Indonesia: The World’s Most Generous Country and Its Challenges in Islamic Philanthropy

By Ganjar Primambudi and Salman Abdurrubi

Giving is about building a connection with those around us, whether they are across the street or on the other side of the world. It brings us together– and that helps us to understand each other more. -Neil Heslop, OBE (Chief Executive Charities Aid Foundation)

Indonesia has been known as one of the most generous countries in the world. The World Giving Index 2023 placed Indonesia in the first rank for the sixth year consecutively as the most generous country in the world. This designation is not without reason, but rather the result of a strong culture of mutual cooperation known as Gotong Royong and social values ​​reflected in its society.

Source: World Giving Index 2023

The development of Islamic philanthropy in Indonesia has garnered international attention. With the majority of Muslim population, Indonesia has become a center for philanthropic activities based on Islamic principles. The World Giving Index 2023 report states that religious institutions and organizations play a crucial role in charitable activities and helping others, offering opportunities for donating money or volunteering. People who consider religion as an important part of their daily lives have a higher overall giving index compared to those who deem religion as unimportant. This factor also drives various philanthropic initiatives undertaken by Indonesian citizens, both on local and international scales. Thus, the Islamic philanthropy ecosystem in Indonesia continues to rapidly evolve, fueled by a spirit of communal sharing and addressing various social challenges.

Amidst the development of philanthropy in Indonesia, Lembaga Amil Zakat (LAZ) play a crucial role in effectively distributing zakat, infaq, and sadaqah. Currently, there are 170 registered LAZ under the Ministry of Religious Affairs of the Republic of Indonesia. These LAZ serve as intermediaries between people willing to donate (muzakki/ munfiq) and beneficiaries (mustahik), ensuring transparency and accountability to ensure that the provided aid reaches the intended recipients.

To improve transparency and accountability, Badan Amil Zakat Nasional (BAZNAS) issued Regulation No. 1 of 2023 regarding the reporting of the implementation of zakat, infaq, sadaqah, and other religious social funds management. Through this regulation, LAZ are required to submit reports via the SiMBA application every 6 months and one year. This is because each LAZ has its own system for collecting and distributing social funds, whether through digitalization or traditional system.

LAZ faces various challenges, including transparency challenges in fund management, human resource capacity,  the need to improve public trust, and the challenge of ensuring that the provided aid is targeted and has sustainable positive impacts.

To address these issues, blockchain technology offers a potential solution. By utilizing this technology, LAZ can enhance transparency and security in fund management, ensuring that every transaction is recorded clearly, quickly, openly, and cannot be manipulated. Moreover, blockchain also allows for more accurate tracking of fund usage, thus strengthening public trust and the effectiveness of philanthropic programs.

By leveraging blockchain technology and continuously improving reporting and fund management systems, LAZ can strengthen its role as an efficient, transparent, and positively impactful Islamic philanthropic institution for Indonesian society. Thus, Indonesia can continue to maintain its reputation as one of the most generous countries in the world and make a significant contribution to the global philanthropic arena.

As the business world navigates the complexities of the modern market, the use of transformative technology becomes crucial for sustainable growth and social impact. At iBantu, we understand the crucial role of blockchain in shaping the future of philanthropy and empowering businesses to make meaningful contributions to society. iBantu can assist in accompanying the transformation of Islamic philanthropy management and enhancing its human resources. We are opening sessions for International Certified Training on Blockchain for Digital Philanthropy.

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Course Overview:

The iBantu  course is designed for professionals in the digital philanthropy space who aspire to harness the power of blockchain for social good. Participants will delve into the fundamentals of blockchain technology, examine its practical applications in philanthropy, and gain insights into real-world use cases that drive positive social change.

Key Features:

  • Industry-Relevant Curriculum: Our courses are tailored to address the specific challenges and trends in the philanthropic sector, providing participants with valuable insights and expertise tailored to their industry.
  • Hands-On Learning Experience: Through interactive projects, case studies, and simulations, participants develop practical skills and problem-solving abilities that they can immediately implement in their professional roles.
  • Expert-Led Instruction: Our courses are facilitated by experienced trainers and industry professionals who bring years of real-world experience to the classroom, ensuring a dynamic and engaging learning experience.

As the digital landscape continues to evolve, embracing blockchain technology is not just a choice but a necessity for businesses committed to driving positive change. Join us at iBantu Course and embark on a journey of transformation, where innovation meets philanthropy to create a better world for all.


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in May
Indonesia: The World’s Most Generous Country and Its Challenges in Islamic Philanthropy
ibantu, Ganjar Primambudi May 7, 2024
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