The Role of Zakat and Waqaf in Public Infrastruktur Development

Abstract

This study explores the role of zakat and waqf in public infrastructure development in Indonesia, with the aim of understanding how these two Islamic financial instruments can be utilized to support vital infrastructure projects. Through a descriptive qualitative approach, data were collected from interviews with stakeholders, and document analysis. The results of the study indicate that zakat, which reaches trillions of rupiah per year, and waqf, especially cash and productive waqf, have great potential to fund various infrastructure projects such as schools, hospitals, and public facilities. Projects that have been built with zakat and waqf funds have shown significant positive impacts on the community, including increasing access to services and creating jobs. However, challenges such as lack of public awareness, limited managerial capacity of managing institutions, and suboptimal regulations need to be addressed.