Innovations in the Management of Zakat in Indonesia in Increasing Entrepreneurial Interest and Poverty Reduction

Abstract

The purpose of this study is to propose the management of BAZNAS which could become one of the role models of digital zakat because it is quite successful in managing zakat and the use of digital technology to create the interests of the people. Literature studies are used to reveal the use of digital technology in BAZNAS and how to develop digital entrepreneurship in the future. Findings from the results of the study revealed that the BAZNAS digital zakat program can reduce poverty due to empowering mustahik through digital entrepreneurship and digital technology innovation in the form of rice atm. Other digital technology implementations are digitizing zakat payments, application-based digital information technology services for muzzaki, and blockchain (i-zakat) in managing digital zakat. For the development of digital entrepreneurship, the role of government, universities, and BAZNAS must be able to work well together. The BAZNAS Model digital zakat program can be a useful reference for global zakat managers in improving digital entrepreneurial practices and zakat distribution innovation. The implications of this research are the results of observations on the practice of using BAZNAS digital zakat technology in the management of zakat based on a theoretical basis using an Islamic economic approach.

Analyzing the commonalities between Islamic social finance and sustainable development goals

“…Numerous earlier research corroborate this finding. For instance, in a study conducted by Utami and Basrowi (2021), they evaluated the BAZNAS management's ability to serve as a good model for digital Zak at and to be successful in implementing digital technology in Zak at management to determine the importance of Zak at to the general public. This study established that the BAZNAS digital Zak at program alleviates poverty through digital technology innovation in ATMs and the ease and speed with which this innovation facilitates Zak at collection.…”

Fintech, Digitalization, and Blockchain in Islamic Finance: Retrospective Investigation

“…Indeed, besides the zakat collection, another main challenge is to distribute the collected Zakat accurately. Digital zakat distribution and classification systems are produced in Malaysia and Indonesia to correctly categorize people in need and determine the required fund percentages for each category (Utami et al, 2021).…”

The preference of Muslim young generation in using digital zakat payment: Evidence in Indonesia

“…Technology-based zakat collection will increase efficiency (Hassan & Noor, 2015;Yahaya & Ahmad, 2019;Abidin & Utami, 2020;Komala, 2020). The use of technology will mobilize better zakat collection and community empowerment (Utami et al, 2021;Doktoralina et al, 2018;Rachman & Salam, 2018;Sulaeman & Ninglasari, 2020). technology (fintech) business development has also influenced the emergence of startup companies engaged in digital finance (Aristiana, 2019).…”

“…Digital technology that can encourage efficiency, transparency, and access expansion is basically in line with the goal of zakat in increasing the impact of zakat for poverty alleviation and community welfare. However, the lack of progress in digital technology can lead to failure in addressing poverty and equity issues (Djaghballou et al, 2018;Utami et al, 2021). This condition emphasizes the importance of digital technology that can handle the entire process of zakat management in terms of operations, collection, and distribution (Beik et al, 2021).…”