A Study of zakat infaq sedeqah and waqf

Strengthening Regional Revenue and Developing Local Economic Independence Through Islamic Economic Instruments: A Study of Zakat, Infaq, Sedekah, and Waqf

Abstract

Zakat, infaq, sedekah, and waqf are Islamic financial instruments with significant roles in supporting economic development, reducing poverty, and increasing regional revenue. These instruments are not only forms of worship but also serve as economic solutions for societal welfare. This article explores the role of zakat, infaq, sedekah, and waqf in strengthening regional revenue and building economic self-sufficiency. Through effective management, zakat funds can be utilized for direct aid to the poor, as well as for education and healthcare. Infaq and sedekah have the potential to finance social infrastructure and support small and medium-sized enterprises, while productive waqf can be a sustainable resource for regional economies. Integrating these instruments into public financial policies with professional management, digital technology, and tax incentives can enhance community participation and improve fund distribution effectiveness. This study demonstrates that the optimal utilization of Islamic economic instruments can foster local economic independence without reliance on debt and taxes, while addressing social issues at the regional level