HOW ISLAMIC SOCIAL FINANCE RELATED TO THE SUSTAINABLE DEVELOPMENT GOALS

Abstract

: This article discusses the urgency of specific regulations to integrate zakat and waqf instruments in the Islamic social finance landscape in Indonesia, in line with the theory of policy harmonization. Through a systematic literature review approach, this study explores the relationship between Islamic Social Finance (ISF) and the Sustainable Development Goals (SDGs), focusing on the role of ISF in addressing issues such as poverty alleviation, food security, and the impact of COVID-19 on humanitarian crises. Findings show a declining trend in research output related to ISF and SDGs, with 13 relevant articles identified. The article emphasizes the potential of ISF instruments, such as zakat and waqf, in achieving various SDGs, as well as the need for supportive policy frameworks, a holistic approach to donor behavior, inclusive stakeholder engagement, and technological infrastructure to enhance the effectiveness of ISF. With the growth of Islamic financial assets and significant philanthropic potential in countries such as Indonesia, the integration of these financial tools is expected to strengthen efforts to achieve the SDGs by 2030. Keywords: Islamic Social Finance, Sustainable Development Goals (SDGs), Zakat and SDGs, Waqf and Development, Maqashid Shariah and Sustainability