Zakat on the Fringes of Policy: Why Does It Fail to Become an Economic Pillar?
Every Eid al-Fitr, economic activity in Indonesia almost always follows a recurring pattern: household consumption rises sharply, societal mobility surges, and the trade sector experiences a significant boom. However, behind this vibrancy lies another reality that often escapes attention—food prices tend to increase, and pressure on the purchasing power of low-income groups becomes more pronounced.
Data from the Central Statistics Agency (2025) indicates that inflation during the March to April 2025 period—which coincides with Ramadan and Eid al-Fitr—is primarily driven by the food, beverages, and tobacco category. Price increases in strategic food commodities occur alongside the seasonal surge in demand, as reflected in the monthly inflation developments during that period.
In Indonesia’s economic structure, this expenditure group carries significant weight, particularly for low-income households. On the other hand, household consumption remains the primary contributor to gross domestic product (GDP), accounting for more than 50 percent. This demonstrates that every consumption surge not only drives economic growth but also has the potential to intensify uneven distribution pressures.
The issue is that this consumption increase is not enjoyed evenly. Upper-middle groups tend to experience welfare expansion through increased spending, while vulnerable groups face a decline in purchasing power due to price hikes. Thus, the Eid momentum not only reflects economic growth but also reveals recurring short-term inequalities.
Great Potential Without a Strong System
Recent studies in Islamic social finance indicate that zakat plays a significant role in enhancing the welfare of low-income communities. Empirical research by M. Kabir Hassan, S. Aliyu, and B. Saiti (2022) reveals that zakat distribution can boost poor household consumption while strengthening their economic resilience.
These findings affirm that zakat has the character of an effective redistribution instrument. In the macroeconomic framework, increased consumption among low-income groups has a greater multiplier effect due to their high marginal propensity to consume.
Nevertheless, this effectiveness is inseparable from the quality of management and institutional capacity. Research by Aam Slamet Rusydiana (2023) shows that zakat institutions in Indonesia still face various challenges, particularly in terms of efficiency, transparency, and technology utilisation.
The main problem faced is the gap between potential and realisation. The National Zakat Amil Agency report (2024) estimates that the national zakat potential exceeds Rp300 trillion, but actual collections remain far below that figure. This condition reflects structural weaknesses in the zakat management system.