Ramadhan and the strengthening of zakat as a fiscal partner for the state

Jakarta — The month of Ramadhan consistently brings a distinct spiritual atmosphere to the lives of Indonesian society. Beyond serving as a momentum for increased personal worship, Ramadhan also strengthens the social and religious dimensions through practices of sharing, charitable giving, and particularly zakat.

During this month, awareness among Muslims to fulfil their obligation of zakat increases significantly, whilst also creating an opportunity for the state to view zakat not merely as an individual religious practice, but also as part of the socio-economic development ecosystem.

In the context of public policy, zakat has considerable potential to strengthen efforts to reduce poverty and expand access to welfare. Indonesia, as the world’s largest Muslim-majority nation, possesses enormous zakat potential. Various studies estimate that the value of national zakat potential can reach hundreds of trillions of rupiah per year. However, the realisation of formally recorded zakat collection remains far below this figure.

This is where the importance of viewing zakat from a broader perspective becomes evident. The state need not position zakat as an instrument that stands apart from fiscal policy. Rather, zakat can become a strategic partner for the state in strengthening social development. The synergistic relationship between zakat and fiscal policy is not new, but it requires stronger institutional design and regulation so that existing potential can be utilised optimally.

Ramadhan presents an opportune moment to reinforce this concept. When public awareness of fulfilling zakat obligations increases, the state can strengthen policy integration so that zakat not only has an impact on spiritual and social aspects, but also becomes part of a more inclusive national fiscal architecture.

In the relevant regulations, it is stipulated that zakat paid through official institutions such as zakat-collecting bodies can be deducted from the gross income of taxpayers.