A Comparative Analysis of Zakat and Waqf Institutions in West Java

Abstract

Islamic social finance is theoretically designed to promote social justice, poverty alleviation, and sustainable development in accordance with the principles of Maqasid al-Shariah. Zakat and waqf, as its core instruments, are expected to function not merely as charitable mechanisms but as sustainable socio-economic tools. However, empirical evidence suggests a persistent gap between normative theoretical frameworks and their practical implementation at the local level. This study aims to examine the extent to which zakat and waqf institutions in West Java align with the normative principles of Islamic social finance. Employing a qualitative comparative approach, this research analyzes normative Islamic social finance theories particularly Maqasid al-Shariah and Sustainable Development Goals (SDGs) and compares them with the operational practices of selected zakat and waqf institutions in West Java. Data were collected through document analysis, institutional reports, and semi-structured interviews with key stakeholders. The findings reveal that while zakat and waqf institutions in West Java demonstrate strong compliance with formal Shariah regulations, their implementation remains largely philanthropic and short-term oriented, with limited emphasis on sustainability, empowerment, and long-term socio-economic impact. Institutional constraints, governance capacity, and regulatory fragmentation emerge as key factors contributing to this gap. This study contributes to the literature by highlighting the practical challenges of translating Islamic social finance theory into effective local practice and offers policy recommendations to strengthen the developmental role of zakat and waqf institutions in Indonesia.