Islamic Philanthropy and Education: The Role of ZIS Funds in Improving Quality Education (SDG 4) in Indonesia
Main Article Content
Abstract
Purpose – This paper examines whether zakat, infaq, and shadaqah (ZIS) funds allocated to education contribute to improving provincial education quality in Indonesia, measured through the Education Index (EI). It addresses the research gap concerning the macro-level role of Islamic social finance in supporting SDG 4 (Quality Education).
Design/methodology/approach – The study applies an explanatory quantitative approach using provincial panel data from 34 provinces (2020–2024). A Fixed Effects Model (FEM) is employed to estimate the effect of educational ZIS funds on the Education Index, with teacher–student ratio, school availability, and poverty rate as control variables. Classical assumption tests confirm that the model is free from heteroskedasticity and autocorrelation.
Findings – Educational ZIS funds show a positive but statistically insignificant effect on the Education Index. School availability has a significant positive influence, while poverty shows a significant negative effect on education quality. The teacher–student ratio has a negative but marginal influence. Jointly, all variables significantly explain variations in provincial educational outcomes.
Research limitations/implications – The study is limited by the short observation period and the use of aggregated educational ZIS data sourced only from BAZNAS, without disaggregated program-level or Zakat Management Organizations (LAZ)data. These limitations restrict deeper evaluation of ZIS effectiveness.
Practical implications – Findings highlight the potential of educational ZIS as complementary financing for human capital development. Improving targeting, governance, and coordination between zakat institutions and local governments could enhance impact.
Originality/value – This paper offers one of the first macro-level empirical assessments of educational ZIS and its relationship with Indonesia’s Education Index, providing evidence-based insights for strengthening Islamic Social Finance in advancing SDG 4.
Downloads
Article Details
Section
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
How to Cite
References
Aziz, Y., Mansor, F., Waqar, S., & Zada, N. (2025). Zakat and Sustainable Development Goals (SDGs). Assessing the Ripple Effect of Obligatory‐Alms Spending on Education. Empirical Evidence From Pakistan. Asian Social Work and Policy Review, 19(1), e70006. https://doi.org/10.1111/aswp.70006
Baird, S., Ferreira, F. H. G., Özler, B., & Woolcock, M. (2014). Conditional, unconditional and everything in between: A systematic review of the effects of cash transfer programmes on schooling outcomes. World Bank Research Observer, 29(2), 141–181. https://doi.org/10.1093/wbro/lkt001
Badan Amil Zakat Nasional (BAZNAS). (2023). Laporan Zakat Nasional 2023: Realisasi Penghimpunan dan Penyaluran Dana ZIS-DSKL. Jakarta: BAZNAS RI.
Badan Amil Zakat Nasional (BAZNAS). (2023). Laporan Pengelolaan Zakat Nasional Akhir Tahun 2024. Jakarta: BAZNAS RI.Baltagi, B. H. (2008). Econometric analysis of panel data (4th ed.). Wiley.
Barugahara, F., & McDowall-Emefiele, S. (2025). The moderating role of education on the financial inclusion–food poverty nexus: The case of Uganda. International Journal of Development Issues, 24(3), 434–455. https://doi.org/10.1108/IJDI-11-2024-0300
Becker, G. S. (1993). Human capital: A theoretical and empirical analysis, with special reference to education (3rd ed.). University of Chicago Press.
Beik, I. S., & Pratama, C. (2017). The impact of zakat on education of mustahik households. International Journal of Zakat, 2(1), 1–14. https://doi.org/10.37706/ijaz.v2i1.2
Choiriyah, E. A. N., et al. (2020). Zakat and poverty alleviation in Indonesia: A panel analysis at provincial level. Journal of Islamic Monetary Economics and Finance, 6(3), 607–630. https://doi.org/10.21098/jimf.v6i3.1122
Fajri, M. N., & Kusumawardhani, A. (2025). Harnessing Zakat to Drive Inclusive Economic Growth: Prospects and Challenges. MEIS: Journal of Middle East and Islamic Studies, 12(1). https://doi.org/10.7454/meis.v12i1.193
Glewwe, P., & Kremer, M. (2006). Schools, teachers, and education outcomes in developing countries. In E. A. Hanushek & F. Welch (Eds.), Handbook of the Economics of Education (Vol. 2, pp. 945–1017). Elsevier. https://doi.org/10.1016/S1574-0692(06)02016-2
Hanushek, E. A., & Woessmann, L. (2015). The knowledge capital of nations: Education and the economics of growth. MIT Press.
Hasanah, N., & Utomo, W. (2021). School infrastructure and education inequality in rural Indonesia. International Journal of Educational Development, 81, 102336. https://doi.org/10.1016/j.ijedudev.2021.102336
Hassan, M. K., Rana, M. S., Alam, M. R., & Banna, H. (2023). Revitalizing the role of Islamic social finance in achieving the SDGs: A comprehensive review. Al Qasimia University Journal of Islamic Economics, 3(2), 1-24. https://doi.org/10.52747/aqujie.3.2.227
Juliana, J., Ismail, S., Avriliani Utami, S., Rohmana, Y., & Marlina, R. . (2024). Factors Affecting Students’ Intention to Donate Cash Waqf: The Mediating Role of Literacy in Indonesia. ISRA International Journal of Islamic Finance, 16(S1), 46–70. https://doi.org/10.55188/ijif.v16iS1.552
Juliana, J., Romdoni, J., Rosida, R., & Marlina, R. (2023). Does Religiosity Mediate the Level of Knowledge of Zakat and the Level of Income on Decision to Pay Zakat. Jurnal Ilmu Ekonomi dan Keuangan Islam, 9(1), 34–45.
Lestari, N. P., et al. (2022). Zakat and income inequality in Indonesia: Panel data analysis in 34 provinces. Journal of Economics, Business, & Accountancy Ventura, 25(3), 344–361. https://doi.org/10.14414/jebav.v25i3.38477
Mahri, A. J. W., Juliana, J., Muhammad, M., Hardiansyah, K., Rosida, R., & Oroji, A. M. (2024). Factors Predicting Intention to Give Waqf in Agriculture Sector. Review of Islamic Economics and Finance, 7(2), 133–140.
Mat Daud, M. S., & Wahid, H. (2024). Assessment of educational performances: the role of zakat and learning–teaching process in higher education institution in Malaysia. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-04-2024-0146
Muhammad, T., & Al-Shaghdari, F. (2024). Islamic social finance system: an alternative tool for tackling educational setbacks in Northern Nigeria. Journal of Islamic Marketing, 15(11), 3115-3136. https://doi.org/10.1108/JIMA-05-2023-0149
Nachrowi, D. N., & Usman, H. (2006). Pendekatan Populer dan Praktis Ekonometrika untuk Analisis Ekonomi dan Keuangan. Jakarta: Lembaga Penerbit Fakultas Ekonomi Universitas Indonesia.Nasim, A., Juliana, J., Ruzain, H., Rusydiana, A. S., Nusannas, I. S., & Abduh, M. (2025). The impact of the Islamic performance index on the financial performance of Indonesian Islamic banks. Journal of Islamic Accounting and Business Research. Advance online publication. https://doi.org/10.1108/JIABR-08-2024-0288
Nuraeni, N., & Anggara, M. R. (2026). Analysis of HDI, Minimum Wage, and Unemployment on Poverty Levels in East Nusa Tenggara: Implications for Zakat’s Role in Economic Resilience. Iqtisad: Journal of Islamic Economic and Civilization, 2(1), 40-56. https://doi.org/10.61630/ijiec.v2i1.18
Palasenda, N. F., & Salikurrahman, M. (2024). The Role of Waqf in Advancing Quality Education and Community Empowerment in Alignment with the Sustainable Development Goals. el-Tarbawi, 17(2), 263-284. https://doi.org/10.20885/tarbawi.vol17.iss2.art4
Prasetyo, A. D., & Zuhdi, U. (2020). Human development and its determinants: A panel analysis of provinces in Indonesia. Economic Journal of Emerging Markets, 12(2), 157–168. https://doi.org/10.20885/ejem.vol12.iss2.art6se
Safitri, S., & Juliana, J. (2025). Analysis Zakat’s Contribution to Alleviation Poverty among the Bearer Disability in SDG’s Achievement. Falah: Jurnal Ekonomi Syariah, 10(1), 42–53. https://doi.org/10.22219/jes.v10i1.39258
Saidam, M.H., Juliana, J., Dzulfikar, Z., Latifah, U., Miftahuddin, A., Suhud, U., Rusydiana, A.S. (2026), "Trends in zakat research across Indonesia–Malaysia: governance, trust and digitalization". International Journal of Ethics and Systems, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOES-11-2025-0655
Samsudin, K. J., Kosni, N. M., & Selamat, Y. (2025). Accommodating Philanthropic Behaviour Among Higher Education Institutions Alumni In Malaysia Towards Waqf Education Fund Sustainability. al-Qanatir: International Journal of Islamic Studies, 34(04), 182-195. https://doi.org/10.64757/alqanatir.2025.3404/1213
Sari, N., & Syahrial, S. (2022). Determinant of Human Development Index in Indonesia: Panel Data Approach. Jurnal Ekonomi dan Pembangunan Indonesia, 22(1), 45–59.
Sari, T. N., Fitriani, F., Nurherling, N., & Rusgianto, S. (2025). Determinants of poverty reduction in Indonesia: Evidence from Islamic social finance, Islamic microfinance institutions, and government interventions. Review of Islamic Economics and Finance, 8(1). https://doi.org/10.17509/rief.v8i1.80331
Sen, A. (1999). Development as freedom. Oxford University Press.
Sudirman, I. F., Lestari, D., Putri, N. C., Hasanah, L., & Kurniati, T. (2026). Regulatory-Practice Gap in Productive Zakat Governance: A Case Study of BAZNAS Tasikmalaya. Iqtisad: Journal of Islamic Economic and Civilization, 2(2), 232-249. https://iqtisad.crjis.com/index.php/irjiec/article/view/36
Suryadarma, D., Suryahadi, A., & Sumarto, S. (2020). Teacher quantity and quality in Indonesia. Bulletin of Indonesian Economic Studies, 56(1), 65–87. https://doi.org/10.1080/00074918.2020.1729795
Tok, E., et al. (2022). Sustainable Development Goals and Islamic Social Finance. Sustainability, 14(11), 6875. https://doi.org/10.3390/su14116875
Usman, M., & Ab Rahman, A. (2023). Funding higher education through waqf: a lesson from Malaysia. International Journal of Ethics and Systems, 39(1), 107-125. https://doi.org/10.1108/IJOES-12-2021-0217
Widarjono, A. (2018). Ekonometrika: Pengantar dan Aplikasinya Disertai Panduan EViews (5th ed.). Yogyakarta: UPP STIM YKPN.
Widiastuti, T., & Firmansyah, I. (2025). Islamic Social Finance and Regional Development Nexus in Indonesia. Islamic Economic Studies Review, 14(1), 88–107.
Widiastuti, T., et al. (2025). Zakat and Sustainable Development Goals (SDGs). Asia & the Pacific Policy Studies, 12(2), 221–238. https://doi.org/10.1111/aswp.70006
World Bank. (2020). Improving education outcomes in Indonesia. World Bank Publications.
Yusoff, M. B. (2011). Zakat expenditure, school enrollment, and economic growth in Malaysia. International Journal of Business and Social Science, 2(6), 175–181. https://irep.iium.edu.my/8867/
Zwane, T., Biyase, M., & Rooderick, S. (2025). Assessing the impact of social grants on household welfare using propensity score matching approach. International Journal of Development Issues, 24(1), 1–15. https://doi.org/10.1108/IJDI-01-2022-0024