OPTIMISING PRODUCTIVE ZAKAT FINANCING: A STRATEGIC FRAMEWORK FOR STRENGTHENING MICROENTERPRISES IN INDONESIA

Abstract

This research aimed to formulate an optimal strategy for utilising zakat financing productively to empower microenterprises within the Indonesian context. To achieve this objective, the Analytic Network Process (ANP) was applied, allowing for the comprehensive and simultaneous analysis of interrelated factors. Data were obtained through focus group discussions involving subject-matter experts. The analysis revealed that insufficient business capital represents a major internal constraint, while limited government support, low literacy levels, and institutional inefficiencies constitute key external challenges. Based on these findings, several strategic solutions were proposed, including the enhancement of human resource capacity, improvement of marketing performance, advancement of public literacy, facilitation of access to financial capital, and strengthening of policy support. These outcomes hold significant potential for refining the zakat management and implementation framework in Indonesia.