How Can Islamic Philanthropic Institutions Achieve Sustainable Development Goals? Evidence from Indonesia

Abstract

Purpose

This study aims to examine how Islamic philanthropic institutions contribute to the achievement of the Sustainable Development Goals (SDGs) in Indonesia by mobilising Islamic social finance instruments, namely zakat, infaq, sadaqah, and waqf.

Design/methodology/approach

This research adopts a qualitative approach using in-depth interviews with key stakeholders from Islamic philanthropic institutions. The collected data were systematically analysed using Atlas.ti as a qualitative data analysis tool to identify patterns, themes, and institutional roles in advancing SDG oriented programmes.

Findings

The findings reveal that Islamic philanthropic institutions significantly align their programmes with the SDGs through social assistance, educational scholarships, business mentoring, micro-capital support, green project financing, and disaster risk mitigation initiatives. These institutions substantially contribute to both the social and economic pillars of the SDGs, with emerging evidence of increasing attention towards environmental sustainability. Moreover, Islamic philanthropic institutions complement government development programmes by acting not only as funding providers but also as catalysts that accelerate SDG achievement through multi-stakeholder collaborations.

Research implications

This research enriches the literature on Islamic social finance and sustainable development by providing empirical evidence from Indonesia, highlighting the strategic role of Islamic philanthropic institutions in bridging gaps between formal state development agendas and community-based welfare initiatives.

Practical implications

The research suggests the need for stronger regulatory frameworks, institutional harmonisation, and cross-sector collaboration to enhance the effectiveness and sustainability of Islamic philanthropic institutions. Policymakers and practitioners are encouraged to strengthen governance mechanisms and partnership models to maximise the institutions’ contribution to national and global SDGs targets.