Analysis of the Role and Institution of Zakat in the Development of Islamic Philanthropy and Its Influence on Fiscal Policy in Indonesia

Abstract

Zakat institutions are part of the development of Islamic philanthropy in Indonesia, because they are related to the influence on fiscal policy whose role needs to be analyzed. Zakat institutions in Indonesia are useful in managing zakat in Indonesia in the development of Islamic philanthropy and will help in equalizing assets so that they do not accumulate because in our assets there are rights of other human beings. Apart from that, there are other institutions in philanthropy, including infaq, shodakoh, wakap, and zakat. The influence of fiscal policy in Indonesia regarding zakat is related to state finances and the economy of a country, such as increasing people's income. Apart from that, in Indonesia zakat has an important role in management, distribution for the social and economic development of an Indonesian country. The Zakat Institution is the fifth pillar of Islam, which means that every Muslim is obliged to pay zakat. The influence of fiscal policy in Indonesia is related to increasing state financial resources, reducing social and economic inequality in a country, and reducing taxes, but zakat can also help in the economic growth of Indonesia.