Indonesia’s Economy Weakens, How Will This Affect Our Zakat Obligations?

The year 2025 will be a challenging period for Indonesia’s economy. Economic growth is slowing down, with various indicators showing significant pressure. However, amid these conditions, zakat continues to play an important role as a social and economic instrument that can help those affected by the downturn.

According to data from the Central Statistics Agency (BPS), Indonesia’s economic growth in the first quarter of 2025 was recorded at 4.87% year-on-year, down from 5.11% in the same period last year. This decline was influenced by various factors, including weakening household consumption and external pressures such as global trade tensions.

Fitch Ratings also lowered its economic growth projection for Indonesia in 2025 to 4.9% from 5%, citing weak consumer spending and global uncertainty. In addition, the International Monetary Fund (IMF) projects Indonesia’s unemployment rate to rise to 5% in 2025, the highest in the ASEAN region.

Impact on Zakat Obligations & the Role of Zakat Institutions Amid the Crisis

In Islam, zakat is an obligation for every Muslim who meets certain criteria. However, a weakening economy can affect people’s ability to fulfill their zakat obligations. Declining income and rising unemployment can lead to a decrease in the number of zakat payers (muzaki).

Nevertheless, zakat can also serve as a solution to support the economy by distributing wealth to those in need, thereby fostering social balance. Effective zakat distribution can have a significant impact on improving community welfare, particularly for vulnerable groups.

Zakat Management Organizations (OPZ) view this situation not as a threat but as a significant opportunity. Economic downturns are not the end of the spirit of sharing but rather a momentum to explore untapped potential. OPZ can utilize various strategies to maintain and even increase the collection of zakat, infak, sedekah, and wakaf.

Zakat has great potential as a sharia economic instrument that can help overcome social and economic inequality. With proper management, zakat can be used for economic empowerment programs, such as skills training and provision of business capital to the poor. These programs not only provide direct assistance but also equip the community with the ability to create their own jobs.

The potential of zakat in Indonesia is enormous. According to Baznas data, the national potential for zakat fitrah in 2025 is estimated at Rp8 trillion. With optimized management and the utilization of digital technology, this figure can be increased to provide broader benefits for the community.

The economic conditions in Indonesia in 2025 present significant challenges, but also open opportunities to strengthen the role of zakat as a social and economic instrument. With proper management and active participation from the community, zakat can help mitigate the negative impacts of economic downturns and create a better social balance.

Channel your zakat through Dompet Dhuafa to help empower communities and create meaningful impact in our lives together.