24 July 2026
WASHINGTON, D.C., UNITED STATES — Indonesia’s approach to Islamic philanthropy has once again captured the world’s attention. Ahmad Juwaini, Chairman of the Board of Trustees of the Dompet Dhuafa Republika Foundation, presented an Islamic social finance model titled “Social Finance Practices to Achieve Social Welfare” at the 2026 International Conference on Islamic Economics and Finance for Sustainable Development (IFESDC), held at the World Bank Headquarters in Washington, D.C., United States.
Now in its 33rd year, Dompet Dhuafa has proven itself to be an Islamic philanthropic institution that plays a strategic role in alleviating poverty while expanding economic inclusion in Indonesia. Through the integrated management of Islamic social funds, the organization demonstrates that zakat, infak, sedekah, and wakaf (Ziswaf) serve not only as instruments of social assistance but also as drivers of sustainable economic development.
Community Funds for Productive Economic Schemes
This approach is realized by integrating Islamic philanthropy instruments—such as zakat, infak, sedekah, and wakaf—with productive financing schemes based on sharia microfinance. This model bridges social funds with real economic activities, thereby fostering sustainable community empowerment.
In line with the framework developed by the Islamic Research and Training Institute (IRTI) under the Islamic Development Bank (IsDB), structured Islamic social finance management plays a crucial role in wealth redistribution, poverty reduction, and strengthening community economic self-reliance.
Read also: Dompet Dhuafa Promotes Impactful Philanthropy Among Muslim Communities in the U.S.
The Numbers Speak for Themselves
Dompet Dhuafa’s performance throughout 2025 reflects the success of this model. The organization successfully raised US$26.15 million in philanthropic funds—equivalent to more than Rp426 billion—and distributed US$26.13 million to various social programs that directly benefit the community. These distributions reached more than 2.82 million beneficiaries across various sectors, ranging from education, health, and social welfare to economic empowerment.
Behind these figures lies a story of a long journey toward building self-reliance—not merely providing temporary aid.
From Mustahik to Muzaki
Ahmad Juwaini, Chairman of the Board of the Dompet Dhuafa Republika Foundation, emphasized that the management of Islamic social finance is not solely aimed at providing temporary assistance but at building the community’s economic self-reliance.
“The synergy of zakat, waqf, and economic activities can create a self-reliant society,” said Ahmad Juwaini.
According to him, the primary goal of managing Islamic social funds is to encourage beneficiaries to improve their quality of life, break free from the cycle of poverty, and ultimately contribute to the Muslim community by paying zakat. A transformation of roles and a shift from mustahik (zakat recipients) to muzaki (zakat givers).
Long-Term Investment Through Education
Dompet Dhuafa’s strategy focuses on long-term investment through human resource development and productive livelihoods. In the education sector, a number of flagship programs, such as the ETOS Scholarship, Bakti Nusa, and SMART Ekselensia, have benefited more than 96,000 people as of 2025.
Long-term monitoring results show that more than 90 percent of scholarship recipients have managed to live above the poverty line after completing their education. This serves as clear evidence that access to education can break the intergenerational cycle of poverty.
From Shrimp Farms to Agricultural Villages
In the realm of economic empowerment, Dompet Dhuafa has developed various programs such as DD Farm, Desa Tani, Vaname Shrimp Farming, and community-based processing industries. Throughout 2025, a total of 11,653 micro-entrepreneurs received mentoring and access to capital through these programs. As a result, approximately 70 percent of participants succeeded in improving their standard of living and rising above the poverty line through the productive businesses they established.
To strengthen the economic resilience of grassroots communities, Dompet Dhuafa also integrated sharia microfinance institutions through the Qardhul Hasan scheme, which provides zero-yield financing. This scheme serves as a fairer financing alternative for micro-entrepreneurs while helping to break the cycle of dependence on high-interest loans that often burden low-income groups.
Embracing a New Chapter: Green Philanthropy
More broadly, the empowerment model implemented by Dompet Dhuafa drives a gradual transformation within society, moving recipients from being recipients of aid to becoming donors. This approach aligns with the direction of national development outlined in the 2025–2029 National Medium-Term Development Plan (RPJMN), which positions the strengthening of social and religious funds as instruments supporting inclusive and sustainable development.
As it enters a new phase in its 33rd year, Dompet Dhuafa has adopted the theme “Green Philanthropy Transformation” to reinforce its commitment to integrating principles of environmental sustainability into the management of Islamic philanthropy. This initiative is expected to strengthen social resilience, improve community well-being, and realize more inclusive and sustainable development for Indonesia. (Dompet Dhuafa)
Source: Sakinah Finance
Translator and editor: Ronna Qurrata Ayun
Categories: Indonesia, Muslims, Philosophy