Beyond philanthropy: Modelling zakat’s systemic role in circular economic practices and sustainable finance

Muhammad Putra Aprullah; Muhammad  Sayuthi; Salsabilla  Julnadi; William Ben Gunawan; Indrayani Indrayani

doi:10.55942/pssj.v6i2.1374

Authors

Muhammad Putra Aprullah Universitas Syiah Kuala https://orcid.org/0009-0001-0294-0405
Muhammad Sayuthi Universitas Malikussaleh
Salsabilla Julnadi Politeknik Negeri Lhokseumawe
William Ben Gunawan INTI International University and Colleges, Negeri Sembilan, Malaysia https://orcid.org/0000-0003-0633-4477
Indrayani Indrayani Universitas Malikussaleh https://orcid.org/0009-0006-5552-4081

DOI:

https://doi.org/10.55942/pssj.v6i2.1374

Keywords:

zakat, sustainable finance, SDGs

Abstract

This study systematically examines the role of zakat in promoting sustainable finance and achieving Sustainable Development Goals (SDGs). Through the Systematic Literature Review (SLR) method, this study identifies, analyzes, and synthesizes various empirical studies and national data related to zakat’s contribution to economic, social, and environmental development. Zakat, as an Islamic social finance instrument, has great potential in strengthening the inclusive financial ecosystem and supporting community welfare. The literature review shows that zakat plays a significant role not only as a financial instrument for redistributing prosperity but also as a catalyst for sustainable development through environmental conservation, economic empowerment, enhanced social resilience, and increased financial inclusion. The integration of zakat into the sustainable finance policy framework has been proven to support the achievement of several SDGs, particularly the goals of poverty eradication (SDG 1), decent work and economic growth (SDG 8), and inequality reduction (SDG 10). Therefore, zakat’s potential can be optimized through good governance, digital innovation, and cross-sector collaboration is a strategic key to accelerate the realization of sustainable finance and achieve the SDGs in Indonesia

Author Biographies

Muhammad Putra Aprullah, Universitas Syiah Kuala

Muhammad Putra Aprullah is a researcher and academic in accounting, sustainable finance, and Islamic social finance. He currently works as an online tutor at Universitas Terbuka. His research focuses on sustainability issues and their implications for financial decision-making. Muhammad Putra has contributed to publications in national and international journals and is committed to fostering research-based innovation with broad societal impact.

Muhammad Sayuthi, Universitas Malikussaleh

Muhammad Sayuthi is a lecturer at Malikussaleh University, Indonesia. His research interests include Islamic social finance, information systems, and engineering. His work focuses on integrating technology and social impact. He has published numerous works in peer-reviewed national journals and is strongly committed to research-based innovation with social impact.

Salsabilla Julnadi, Politeknik Negeri Lhokseumawe

Salsabilla Julnadi is currently a teaching assistant in the Accounting Study Program at Politeknik Negeri Lhokseumawe. Her expertise and contributions in language are invaluable to this research. Her dedication to advancing the field of language and her commitment to improving community writing are reflected in her work.

William Ben Gunawan, INTI International University and Colleges, Negeri Sembilan, Malaysia

William Ben Gunawan is a management researcher with an academic foundation in nutrition, bringing an interdisciplinary perspective to the study of organizational and managerial practices. His work reflects a nuanced understanding across key management functions, including finance, marketing, operations, human resources, entrepreneurship, and sustainability. Having completed a Master of Management, he is currently pursuing a Master of Business Administration while working professionally as a marketing and strategic analyst.

Indrayani Indrayani, Universitas Malikussaleh

Indrayani is a Lecturer at Universitas Malikussaleh, Indonesia. His research interests include Accounting, Accounting Education, Accounting Information Systems, Accounting Technology, and Digital Accounting. His work focuses on the integration of accounting practices with digital technologies, particularly in the context of digital transformation and innovation in accounting education. He has published in national and international peer-reviewed journals and is committed to research-driven innovation with societal impact.

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