The Effectiveness of Productive Zakat Distribution in Supporting the Sustainable Development Goals (SDGs): A Case Study of BAZNAS East Java and LAZISNU PWNU East Java

Abstract

Productive zakat is an important instrument in Islamic economics that functions as a means of transferring wealth and economic empowerment of the poor. The problem raised in this study is how effective the distribution of productive zakat is in supporting the achievement of Sustainable Development Goals (SDGs), especially Poverty Eradication (SDG 1), Decent Work and Economic Growth (SDG 8), and Reducing Inequality (SDG 10). This study aims to analyze the process of productive zakat distribution, its effectiveness in improving the welfare of mustahik, and its contribution to the Sustainable Development goals. This study uses a qualitative approach with a case study method at the zakat institutions LAZISNU PWNU East Java and BAZNAS East Java. Data were collected through in-depth interviews, field observations, and documentation, then analyzed descriptively qualitatively. The results show that the distribution of productive zakat is carried out through the stages of mustahik selection, provision of business capital, mentoring, and periodic evaluation. This program has proven effective in increasing the income and independence of mustahik, as well as contributing to reducing social inequality. Supporting factors include intensive mentoring and professional governance, while inhibiting factors include low financial literacy and limited access to further capital.