Strengthening MSMEs Through the Productive Zakat Scheme in the Perspective of Islamic Economics in Indonesia

Abstract

Micro, Small, and Medium Enterprises (MSMEs) serve as the backbone of Indonesia’s economy, contributing significantly to employment and national GDP. However, persistent financial constraints hinder their scalability and long-term sustainability. This paper explores the potential of zakat produktif (productive zakat) as an innovative financing tool within the Islamic economic system to address these challenges. The objective is to analyze how the integration of zakat principles into MSME development can foster inclusive economic growth and reduce poverty. Using a conceptual-analytical methodology rooted in Islamic economic theory and a review of empirical literature, this study highlights the dual socio-spiritual and economic role of zakat in strengthening MSMEs. Findings indicate that a structured productive zakat scheme—through institutional support and governance—can effectively serve as an alternative to conventional financial models. The implications extend beyond financial inclusion to encompass moral accountability, equitable wealth distribution, and long-term economic justice. This article advocates for integrating zakat institutions more prominently into Indonesia’s MSME development policies. It concludes that when regulated and optimized correctly, zakat produktif offers transformative potential for inclusive and sustainable development aligned with Islamic economic values.