Digitalization of Zakat in Stimulating Community Socio-Economic Development in the Middle of the Covid-19 Pandemic (Maqashid Syariah Perspective)

Abstract

The Covid-19 pandemic seems to have harmed people's lives, especially in social and economic aspects. The Islamic finance sector can solve these problems because, in principle, Islamic economics aims to achieve public welfare. Zakat, infaq, alms and waqf is one form of activity in Islamic economics, which is part of the form of compulsory worship and advice from Allah SWT. Previous studies have stated that the management and distribution of zakat, from direct assistance to community empowerment assistance, is effective in helping improve the community's social and economic welfare. Applying zakat with the community's principles and returning to the community can encourage economic equity, especially during the Covid-19 pandemic, like today, where many people's economic activities are hampered. The digital zakat system is a breakthrough to increase the effectiveness of the management and distribution of zakat to the community. The digitization of zakat also makes it easier for the community to distribute zakat obligations. Coordination from various parties, such as the government, zakat institutions and academics, is needed in developing the zakat digitization system to achieve maximum results. With the application of Maqashid Syariah in managing digital zakat, it is hoped that zakat can be right on target in meeting human needs.

New Finding on Zakat Efficiency Measurement in Indonesia 2016-2022

“…So, with the progress of digitalization of zakat, the convenience of zakat payment services at zakat institutions can be significantly increased, because Muzaki can pay zakat directly online without having to visit the zakat institution's office. Rizal & Pakkanna (2023) also emphasize that digitalization can increase zakat contributions by providing a more accessible and convenient way to pay zakat, which can help zakat institutions collect more funds.…”

The Implementation of Maqasid Shariah in Economic Studies

“…Research that discusses the correlation or relevance between Islamic finance and maqashid sharia during the Covid-19 pandemic is still quite a bit found. Several studies that are relevant to this topic, namely Rizal & Pakkanna (2023) explain the digitalization of zakat in encouraging socio-economic development of society in the midst of the Covid-19 pandemic from the perspective of maqashid sharia. The Covid-19 pandemic seems to have harmed people's lives, especially in social and economic aspects.…”

Analysis of Effectiveness and Challenges of Digital Zakat Management: Case Study on Shopee and Tokopedia Platform

“…These systems utilize fintech and blockchain technology to ensure transparency, traceability, and efficiency in zakat transactions [6], [7]. Islamic fintech, in particular, aims to ensure Shari'ah compliance, financial inclusion, and poverty reduction in the management of zakat [8]. The digitization of zakat allows for flexible, efficient, and cost-effective services, making it easier for individuals to fulfill their zakat obligations [9].…”