Abstract
The problem of Zakat management lies in its operational and managerial collection and distribution of its funds. This study aims to examine the performance of Zakat institutions in Indonesia in relation to economic sustainability. To achieve the aim of the study, the paper employs a quantitative descriptive methodology with the data taken from the annual report of the National Board of Zakat for the Republic of Indonesia (BAZNAS). The data consists of financial ratios of Zakat management performance from 2019 to 2022. The data was then gauged and analyzed through financial and management ratios developed by BAZNAS. The study results indicate a positive trend in the management of Zakat in Indonesia throughout the years. The growth ratio increased from 26% in 2019 to 42.16% and 50.02% in 2021 and 2022 respectively. The paper infers that there is a big potential for Zakat in Indonesia to support the economic sustainability of the nation. However, there must be an initiative from Zakat institutions and policymakers to increase awareness of Zakat. The study humbly suggests productive activities in the distribution of zakat funds, creating a circular economy for the nation's Muslims. The paper carries some limitations and future recommendations for the study of Zakat.
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