INEZA, A New Think Tank Pioneers Zakat Economics for Poverty Alleviation

MAKASSAR, RAKYAT NEWS–The launch of a new regional think tank named the Institute of Zakat Economics (INEZA) took place in Makassar, the largest city in eastern Indonesia, on Friday, June 8, 2024.

INEZA, dedicated to leveraging zakat for poverty alleviation and enhancing community welfare, was established by a consortium of national figures, academics, practitioners, entrepreneurs, and prominent individuals from around Sulawesi.

Poverty remains a persistent global challenge, impeding development and affecting millions of lives. Despite various strategies implemented by governments and organizations, poverty remains a significant obstacle. One particularly effective approach to addressing poverty lies in the utilization of zakat. Zakat, one of the Five Pillars of Islam, holds not only spiritual significance but also plays a crucial socio-economic role. With proper management, zakat can serve as a powerful tool in eradicating poverty.

Zakat, an obligatory act for every capable Muslim, requires the donation of a specific portion of wealth to those entitled to receive it, known as mustahik. These categories include the poor, the needy, zakat collectors, those whose hearts are to be reconciled, those in bondage, those in debt, those in the cause of Allah, and the wayfarer. This categorization ensures a more equitable distribution of wealth and aims to reduce social inequality.

Effective utilization of zakat in poverty alleviation necessitates professional and transparent management. Zakat institutions must efficiently collect and distribute zakat, providing transparent reporting to donors, known as muzakki. Zakat should be directed towards sustainable projects, aiming to help beneficiaries break free from the cycle of poverty.