Digital Transformation in Zakat Collection and Distribution in Indonesia: A Literature Review

Abstract

Purpose

This study aims to examine the digital transformation in the collection and distribution of zakat in Indonesia, through a comprehensive literature review of recent studies (within the last five years) indexed in Sinta or Scopus.

Design/Methodology/Approach

This is a systematic literature review (SLR) of peer-reviewed journal articles, proceedings and reports published between 2020-2025, using inclusion criteria based on digitalisation of zakat management, collection or distribution in Indonesia. Analytical synthesis is used to identify key themes, gaps, and future research directions.

Findings

The review finds that digital transformation (including mobile apps, digital payment platforms, blockchain, data analytics) has positively impacted accessibility, efficiency and transparency of zakat collection and distribution in Indonesia. However, significant challenges remain in digital literacy, regulatory frameworks, integration of systems and equitable access across regions.

Research limitations/implications

The study is limited to literature published in Indonesia or about Indonesia, and focused on last five years, which may exclude earlier foundational work. Future research could include empirical quantitative studies evaluating the impact of specific digital tools on zakat outcomes.

Practical implications

For zakat institutions (Lembaga Amil Zakat/LAZ and the Badan Amil Zakat Nasional (BAZNAS)) and policymakers, insights highlight the need to invest in user-friendly digital platforms, build digital literacy, ensure interoperability and Sharia-compliance, and develop supportive regulation.

Social implications

The digital transformation of zakat systems offers greater inclusion, better targeting of beneficiaries, and enhanced trust and accountability—contributing to poverty alleviation and socio-economic empowerment in Muslim communities.

Originality/value

This review synthesises recent literature (2020–2025) specifically on Indonesia, identifies emerging digital technologies (e.g., blockchain) in zakat management, and proposes a conceptual agenda for research and practice in the digital era of Islamic social finance.