ZAKAT AND THE RESILIENCE OF ISLAMIC ECONOMICS IN THE ERA OF GLOBAL UNCERTAINTY: EVIDENCE FROM INDONESIA

Abstract

This study looks into how zakat might be used strategically to strengthen Indonesia's Islamic economy in the midst of ongoing global unpredictability. In recent years, Indonesia and other emerging countries have faced significant challenges due to global economic instability, financial crises, and social inequality. Indonesia, with one of the world's largest Muslim populations, has enormous potential to employ zakat as a tool for both socioeconomic policy and religious requirement. This paper examines how zakat enhances social welfare, equitable income distribution, and economic stability using empirical and theoretical data from recent Indonesian studies. The study used a qualitative literature review methodology, gathering material from seven peer-reviewed academic sources focusing on zakat, Islamic economics, and socioeconomic development in Indonesia. The article focuses on key subjects such as poverty alleviation, redistributive justice, and the role of zakat institutions in assisting vulnerable communities during difficult economic times. The findings indicate that zakat is critical for lowering income disparities, protecting low-income households' purchasing power, and encouraging equitable economic growth. Zakat also serves as an economic stabilizer by encouraging consumption and strengthening social safety nets, particularly during times of crisis. The research does, however, highlight a number of concerns, including the prevalence of consumptive rather than productive zakat consumption, unequal distribution systems, and governance limits. This study concludes with policy recommendations for developing zakat management systems, increasing institutional openness, and encouraging successful zakat programs. These steps are expected to boost zakat's effectiveness as a long-term instrument for strengthening Indonesia's Islamic economy.