By: Endang Susanti, S.Sos (Master of Islamic Political Thought Student)
The world is currently at a decisive crossroads in economic history. Global inequality is increasingly stark as a handful of people control most of the world’s wealth, while millions more are still trapped in economic uncertainty. The Oxfam report (2025) notes that the richest 1% now control 45% of global wealth, showing the widening gap between the rich and the poor. The ongoing social, ecological, and moral crises indicate that the debt-based development model, resource exploitation, and capital accumulation are no longer sustainable. The world is experiencing structural and spiritual exhaustion that can only be overcome through a more equitable and benefit-oriented alternative economic system. In the midst of this crisis, Islam offers an economic paradigm that is just, civilized, and oriented towards a balance between the material and spiritual aspects of life.
The Islamic economic paradigm is rooted in the theory of Maqāṣid al-Sharī’ah as formulated by al-Ghazali and further developed by al-Shatibi. According to al-Ghazali, the main purpose of sharia is to safeguard the five fundamental aspects of human life (al-ḍarūriyyāt al-khamsah): religion (ḥifẓ al-dīn), soul (ḥifẓ al-nafs), intellect (ḥifẓ al-‘aql), heredity (ḥifẓ al-nasl), and property (ḥifẓ al-māl). Al-Shatibi emphasized that all public policies and economic systems should be directed to realize the collective benefit (al-maṣlaḥah al-‘āmmah) in a balanced manner between the material and spiritual dimensions. In this context, zakat, waqf, and Islamic philanthropy are real instruments of the maqāṣid economy that function to uphold social justice and humanitarian solidarity. Zakat maintains the justice distribution of wealth (ḥifẓ al-māl), waqf ensures social sustainability (ḥifẓ al-nafs), while philanthropy strengthens the spiritual awareness and solidarity of the ummah (ḥifẓ al-dīn). Thus, the Islamic economy is not just a system of transactions, but a system of civilization that fosters a balance between prosperity and value.
In the global context, Indonesia has set a big vision to become the World Sharia Economic Center by 2029 as stated in the Joint Press Release No. 27/187/DKom, Ket-3023/DP-MUI/VIIII/2025. This vision is not only an effort to strengthen the national sharia economic ecosystem, but also makes Indonesia an inspiration for the Islamic world in building an economic architecture that is just and beneficial. One of the strategic steps towards this vision is to make the zakat and waqf sector a flagship program in realizing social justice and economic welfare of the people.
The economic potential of Islamic philanthropy in Indonesia is huge. Based on data from the National Amil Zakat Agency (BAZNAS, 2024), the potential for national zakat reaches around IDR 327 trillion per year, but the realization of new collections is around 10% or IDR 33 trillion of the total existing potential. On the other hand, the Indonesian Waqf Agency (BWI, 2024) estimates that the potential for national waqf reaches IDR 400 trillion per year, with more than 440,000 waqf land points spread throughout Indonesia. This great potential awaits more innovative and professional management so that it can have a significant impact on the welfare of the community.
In the State of the Global Islamic Economy (SGIE) 2024/2025 report published by DinarStandard and Salaam Gateway, Indonesia ranks third in the world below Malaysia and Saudi Arabia. This ranking is seen from six main sectors namely halal food, Islamic finance, Muslim-friendly travel, modest fashion, halal pharmaceuticals and cosmetics, and media and innovation. This achievement is not only a symbolic achievement, but a strategic momentum for Indonesia to strengthen its role and contribution in the global Islamic economy.
Malaysia and Saudi Arabia are examples as well as strategic partners for Indonesia in the development of the Islamic social economy. In Malaysia, the governance of zakat and waqf has been integrated with public policy and the Islamic finance industry. PPZ-MAIWP in its 2024 Annual Report recorded a national zakat collection of more than RM 1.13 billion or equivalent to IDR 4.44 trillion. Malaysia has also successfully developed a Corporate Waqf Model through Johor Corporation and Permodalan Nasional Berhad (PNB), where corporate dividends are channelled for social empowerment. Meanwhile, in Saudi Arabia, the value of licensed waqf fund assets will reach more than SAR 1 billion (around IDR 4 trillion) by 2024 and is an integral part of Saudi Vision 2030 for the diversification of the non-oil and gas economy. The country also distributes part of its zakat and waqf proceeds to fund renewable energy research, education, and empowerment of the poor.
However, Indonesia’s superiority lies in the social character of its people. The culture of mutual cooperation and the spirit of ta’āwun make Islamic philanthropy not just a government program, but a community-based social movement. With institutional support such as BAZNAS and BWI as well as active participation in international forums such as the World Zakat and Waqf Forum (WZWF) which now houses 43 countries, Indonesia has occupied a strategic position as a center for global Islamic philanthropic diplomacy. Indonesia is also a pioneer in the preparation of international standards such as the Zakat Core Principles (ZCP) and Waqf Core Principles (WCP) which are now adopted by many countries as a reference for transparent and accountable governance of zakat and waqf.
In addition to institutional innovation, advances in digital technology have accelerated the economic transformation of Islamic philanthropy. Online platforms such as Baznas.go.id, GlobalSadaqah, and KitaWakaf.com expand people’s access to zakat, waqf, and donations easily and transparently. In fact, blockchain innovation for zakat has begun to be developed to create a social financial system that can be traced and trusted. This innovation reflects not only technical modernization, but also the application of ḥifẓ al-dīn values, which are to maintain honesty, trustworthiness, and integrity in the practice of sharia economics.
Furthermore, Indonesia has entered the phase of maqāṣid-based green finance. Through the issuance of Green Sukuk Indonesia since 2018, the government has become a global pioneer in financing sustainable projects such as clean energy, green transportation, and forest rehabilitation. Meanwhile, the Green Waqf Framework developed by BWI with UNDP became the first eco-philanthropy model in the Islamic world, directing waqf funds for environmental conservation, water management, and local community empowerment programs. This initiative expands the scope of maqāṣid by adding the dimension of ḥifẓ al-bi’ah (protecting the environment) as a form of human spiritual responsibility towards the earth.
In order for Indonesia to truly become the center of the world’s Islamic economy, a more measurable national strategy is needed. First, building an integrated digital-based zakat, waqf, and philanthropy data system to ensure transparency and collaboration across institutions. Second, strengthening the capacity of human resources through professional training and certification for amil and nazir. Third, encouraging collaboration between Islamic financial institutions, the halal industry, startups, and academics to create social economic innovations. Fourth, strengthening Islamic economic diplomacy through global forums such as the IsDB and WZWF so that Indonesia becomes a reference in Islamic social economic governance. In addition to the four strategies above, the most important thing to do is to strive to become a superior country in the six main indicators of the State of the Global Islamic Economy (SGIE), namely halal food, Islamic finance, Muslim-friendly travel, modest fashion, halal pharmaceuticals and cosmetics, and media and innovation. Excellence in these six strategic sectors will be a solid foundation to make Indonesia not only the center of the world’s Islamic economy, but also the epicenter of innovation, benefits, and global inspiration for the future Islamic economy.