Bridging the Gap Between National Zakat Potential and Collection Performance: Strengthening Institutional Governance and Regulatory Frameworks in Indonesia
Indonesia possesses one of the largest zakat potentials globally; however, the realization of zakat collection remains substantially below its estimated capacity. This study aims to identify the key institutional factors contributing to the gap between zakat potential and actual collection and to develop a strategic governance framework for optimizing national zakat management. Employing a qualitative library research approach, the study systematically reviews recent scholarly literature on zakat governance, institutional accountability, digital transformation, regulatory frameworks, stakeholder collaboration, and Islamic social finance. Data were analyzed using thematic content analysis to identify recurring governance challenges and strategic policy priorities. The findings reveal that the underperformance of zakat collection is primarily driven by institutional weaknesses, including inconsistent governance standards, limited transparency and accountability, fragmented digital infrastructure, weak regulatory integration, insufficient professional capacity, and inadequate multi-stakeholder coordination. Based on these findings, the study proposes an integrated governance framework comprising six strategic pillars: governance standardization, interoperable national zakat information systems, adaptive digital governance regulations, integration of zakat into fiscal policy, professionalization of zakat institutions, and strengthened collaboration among government agencies, zakat organizations, financial institutions, religious authorities, and civil society. The study concludes that improving zakat performance requires comprehensive institutional reforms rather than merely increasing public awareness. By reinforcing governance quality and digital transformation, Indonesia can maximize zakat collection, enhance public trust, improve institutional efficiency, and strengthen the role of Islamic social finance in achieving inclusive and sustainable national development.