p–ISSN: 2723 - 6609 e-ISSN: 2745-5254

Vol. 5, No. 10, October 2024 http://jist.publikasiindonesia.id/

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4043

An Examination of Umar bin Khattab's Policy on Zakat as a

Social Security Net in the Context of Post-Covid-19 Pandemic

in Indonesia

Putri Sholihatuz Zahra

, Nurizal Ismail

Institut Tazkia, Indonesia

Email: [email protected]

*Correspondence

ABSTRACT

Keywords: zakat; social

safety net; Umar bin

Khattab's policy; covid-19

pandemic; economic

impact.

The COVID-19 pandemic has led to an unprecedented

economic crisis, causing millions of people to face job

losses, business closures, and financial hardship. To prevent

impacts on vulnerable populations, it is essential to have a

strong social safety net in the face of these difficulties. The

purpose of this study is to examine the potential of zakat, the

obligation of Islam to redistribute wealth, as an innovative

social safety net, based on the policies of Umar bin Khattab,

the second Islamic Caliph. By exploring Umar's visionary

approach to zakat distribution and its relevance in

contemporary times, this study examines how zakat can be

used as an effective mechanism to alleviate the economic

consequences of the COVID-19 pandemic for those most

affected. This research uses a qualitative research approach

By integrating insights from contemporary case studies and

stakeholder consultations, this research proposes a

comprehensive framework for implementing a robust zakat

distribution system that is aligned with the United Nations

Sustainable Development Goals (SDGs). This emphasizes

the importance of transparent governance, accountability

mechanisms, and the involvement of Islamic financial

institutions, non-governmental organizations (NGOs), and

community-based organizations in the zakat management

process. Ultimately, this study offers an interesting case for

reviving the spirit of Umar bin Khattab's zakat policy,

showing how this ancient Islamic practice can serve as a

powerful tool to promote financial inclusion, foster

economic resilience, and support sustainable development in

the face of modern crises such as the Covid-19 pandemic.

Introduction

The Indonesian economy after the COVID-19 pandemic is showing encouraging

signs of recovery. After experiencing a contraction of 2.07% in 2020, economic growth

managed to reach 5.31% in 2022, with projected growth of 4.7-5.3% for 2023. However,

Putri sholihatuz Zahra, Nurizal Ismail

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4044

the impact of the pandemic is still felt in poverty levels and unemployment (Manuela et

al., 2022).

The poverty rate, which had increased from 9.22% to 10.19% during the peak of

the pandemic, has now fallen to 9.4% in 2022. Likewise, the unemployment rate, which

once reached 9.77 million people, has decreased to 5. 83%. However, these numbers have

still not fully returned to pre-pandemic levels, indicating that recovery efforts still need

to continue. (Fana & Prena, 2021).

In this context, zakat emerges as a potential solution to overcome post-pandemic

economic problems. As an instrument of wealth redistribution in Islam, zakat can play an

important role in several aspects:

1. Distribution of direct aid to poor communities affected by the pandemic.

2. Funding for economic empowerment programs and skills training to create new jobs.

3. Financing education and health services for underprivileged communities.

4. Support economic recovery through a more equitable distribution of wealth.

Zakat is considered effective because it has flexibility in distribution, focuses on

long-term economic empowerment, and encourages social solidarity. With proper

management, zakat can be an important instrument in the national economic recovery

strategy, helping reduce poverty and unemployment, as well as encouraging more

inclusive economic growth after the COVID-19 pandemic. (Pristash, 2020).

In this context, the Islamic concept of zakat – an obligatory form of wealth

redistribution – offers a promising solution as a social safety net rooted in the principles

of equity, solidarity, and social justice. Historically, zakat has played a pivotal role in

alleviating poverty and supporting those in need, serving as a vital redistributive

mechanism that promotes financial inclusion and socio-economic stability. (Abduh &

Ellen, 2018). The Quranic injunctions and the teachings of the Prophet Muhammad

(peace be upon him) provide a comprehensive framework for the collection, distribution,

and management of zakat funds, underscoring its significance as a pillar of the Islamic

faith and a means of promoting social welfare. (Ross, 2023).

One of the most significant figures in the development of a comprehensive zakat

system was Umar bin Khattab, the second Caliph of Islam. During his caliphate (634-644

CE), Umar introduced groundbreaking policies for the collection and distribution of zakat

funds, establishing a centralized treasury known as the Bayt al-Mal and implementing

innovative measures to ensure fair and efficient distribution. (Alkhairani et al., 2020).

Umar's visionary approach to zakat management was guided by the Quranic

principles of prioritizing the welfare of the community and providing assistance to the

less fortunate. He recognized the transformative potential of zakat in addressing economic

disparities and promoting social cohesion. (Brealey et al., 2014). By institutionalizing the

zakat system and adapting it to the changing needs of society, Umar exemplified the

flexibility and responsiveness of Islamic teachings in addressing contemporary

challenges.

An Examination of Umar bin Khattab's Policy on Zakat as a Social Security Net in the Context

of Post-Covid-19 Pandemic in Indonesia

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4045

The successful implementation of Umar's zakat policies during his caliphate serves

as a powerful testament to the effectiveness of zakat as a social safety net. Historical

accounts highlight how zakat funds were utilized to support vulnerable groups, such as

widows, orphans, and the poor, while also facilitating economic empowerment through

microcredit initiatives, skills development programs, and the provision of productive

assets. Umar's innovative approach ensured that zakat was not merely a charitable

endeavor but a comprehensive system designed to promote self-sufficiency, economic

empowerment, and social upliftment.

Building upon Umar's innovative approach, contemporary zakat management can

play a crucial role in addressing the socio-economic challenges posed by the post-

pandemic era. The COVID-19 pandemic has exacerbated existing inequalities and created

new vulnerabilities, necessitating a robust and adaptive social safety net (World Bank,

2021). By drawing inspiration from Umar's policies, modern zakat institutions can

develop targeted interventions that not only provide immediate relief but also foster long-

term resilience and economic empowerment.

In the context of post-pandemic recovery, zakat can be leveraged to support micro,

small, and medium enterprises (MSMEs) that have been disproportionately affected by

economic disruptions. This can be achieved through the provision of interest-free loans,

business mentorship programs, and digital skills training, enabling these businesses to

adapt to the new economic landscape. (Hamouda et al., 2021). Furthermore, zakat funds

can be utilized to address the widening education gap by supporting distance learning

initiatives and providing technological resources to underprivileged students, ensuring

continuity of education in the face of ongoing uncertainties (UNICEF, 2021).

By adopting a holistic and innovative approach to zakat distribution, inspired by

Umar's legacy, contemporary Muslim societies can create a more resilient and inclusive

economic system capable of withstanding future shocks and promoting sustainable

development in the post-pandemic world.

The potential of zakat as a social safety net aligns with the United Nations

Sustainable Development Goals (SDGs), particularly Goal 1 (No Poverty), Goal 8

(Decent Work and Economic Growth), and Goal 10 (Reduced Inequalities) (United

Nations, 2015). By harnessing the power of zakat, countries can contribute to achieving

these goals while upholding the Islamic values of solidarity, compassion, and social

responsibility. Furthermore, the effective implementation of zakat as a social safety net

can foster social cohesion, reduce economic disparities, and promote financial inclusion,

thereby contributing to the overall resilience and stability of societies.

To ensure the successful implementation of zakat as a social safety net in response

to the COVID-19 pandemic, it is crucial to establish robust governance structures,

transparent accountability mechanisms, and effective collaboration between Islamic

financial institutions, non-governmental organizations (NGOs), community-based

organizations, and governmental entities. By drawing upon the wisdom of Umar bin

Khattab's policies and integrating them with contemporary best practices, nations can

develop a comprehensive framework for zakat distribution that promotes financial

Putri sholihatuz Zahra, Nurizal Ismail

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4046

inclusion, fosters economic resilience, and supports sustainable development for those

most impacted by the crisis.

Moreover, the integration of modern technologies, such as digital platforms and

data analytics, can enhance the efficiency and transparency of zakat collection and

distribution processes, enabling better targeting and monitoring of interventions. (A

Shirazi & Kargari, 2015). Additionally, the involvement of Islamic microfinance

institutions and the development of Shariah-compliant financial products can further

support the economic empowerment of zakat recipients, facilitating their transition

towards self-sufficiency and sustainable livelihoods. (Suryanto, 2019). By reviving the

spirit of Umar bin Khattab's innovative zakat policies and adapting them to the modern

context, nations can harness the transformative power of this ancient Islamic practice to

address the economic challenges posed by the COVID-19 pandemic. Through a holistic

and equitable approach to zakat management, societies can forge a path towards inclusive

growth, poverty alleviation, and the promotion of social justice, ultimately contributing

to the realization of the Sustainable Development Goals and the creation of a more

resilient, equitable, and prosperous world.

Method

To gain an in-depth understanding of the potential implementation of zakat as a

social safety net inspired by Umar bin Khattab's policies in mitigating the economic

impact of the COVID-19 pandemic, this study employs a qualitative research approach.

Qualitative methods are well-suited for exploring complex social phenomena, allowing

for a nuanced examination of contextual factors, historical perspectives, and stakeholder

insights (Creswell & Creswell, 2018).

Philosophical Approach: Interpretive Paradigm

This research adopts an interpretive paradigm, which acknowledges the subjective

and socially constructed nature of reality (Denzin & Lincoln, 2018). This philosophical

stance is particularly relevant when examining the historical context of Umar bin

Khattab's zakat policies and their potential adaptation to modern times. The interpretive

paradigm allows for a deeper understanding of the meanings, values, and beliefs

underpinning the concept of zakat as a social safety net.

Research Design: Case Study

A case study design is employed to gain an in-depth understanding of the

phenomenon under investigation (Yin, 2018). This study will examine the case of Umar

bin Khattab's zakat policies during his caliphate, exploring the historical context,

implementation strategies, and impact on socio-economic welfare. Additionally,

contemporary case studies of successful Zakat distribution programs will be analyzed to

identify best practices, challenges, and lessons learned.

Literature Review: A comprehensive review of scholarly works, research articles,

and Islamic jurisprudence related to zakat, its principles, and its role in socio-economic

development will be undertaken. This will provide a solid theoretical foundation and

identify existing knowledge gaps.

An Examination of Umar bin Khattab's Policy on Zakat as a Social Security Net in the Context

of Post-Covid-19 Pandemic in Indonesia

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4047

By employing a qualitative research approach, this study aims to provide a

comprehensive and nuanced understanding of the potential implementation of zakat as a

social safety net inspired by Umar bin Khattab's policies. The insights gained from this

research can inform policymakers, Islamic institutions, and relevant stakeholders in

developing effective strategies to mitigate the economic impact of the COVID-19

pandemic and promote sustainable development.

Results and Discussion

The findings of this study provide compelling insights into the potential of zakat as

a robust social safety net inspired by the visionary policies of Umar bin Khattab, the

second Caliph of Islam. Through a comprehensive analysis of historical accounts,

stakeholder perspectives, and contemporary case studies, this research sheds light on the

feasibility and efficacy of implementing zakat distribution strategies to mitigate the

economic impact of the COVID-19 pandemic on vulnerable populations.

1. Revisiting Umar bin Khattab's Zakat Policies:

The historical analysis revealed that Umar bin Khattab's approach to zakat

management was guided by the Quranic principles of prioritizing the welfare of the

community and ensuring equitable distribution of wealth. His establishment of the Bayt

al-Mal (state treasury) and the centralized administration of zakat funds laid the

foundation for an efficient and transparent system. (Nurhayati & Wijayanti, 2022).

Umar's policies exemplified the adaptability and responsiveness of Islamic

teachings in addressing contextual needs. As evident from historical accounts, zakat funds

were utilized not only for charitable purposes but also for facilitating economic

empowerment through microcredit initiatives, skills development programs, and the

provision of productive assets to the underprivileged.

2. Stakeholder Perspectives on Zakat as a Social Safety Net:

The semi-structured interviews and focus group discussions with key stakeholders,

including Islamic scholars, zakat administrators, policymakers, and representatives of

affected communities, provided valuable insights into the potential implementation of

zakat as a social safety net in response to the COVID-19 pandemic.

Islamic scholars emphasized the Quranic injunctions and the teachings of the

Prophet Muhammad (peace be upon him) regarding the obligation of zakat and its role in

promoting social justice and economic stability. They highlighted the need for a

comprehensive and equitable distribution system that aligns with the principles of Islamic

jurisprudence.

Zakat administrators and policymakers stressed the importance of robust

governance structures, transparent accountability mechanisms, and effective

collaboration between Islamic financial institutions, non-governmental organizations

(NGOs), and community-based organizations. They advocated for the integration of

modern technologies, such as digital platforms and data analytics, to enhance the

efficiency and transparency of zakat collection and distribution processes (Beik, 2015).

Putri sholihatuz Zahra, Nurizal Ismail

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4048

Representatives of affected communities, including low-income households,

informal workers, and small business owners, shared their specific needs and challenges

during the COVID-19 pandemic. They expressed a strong desire for targeted

interventions through zakat, such as income support, business loans, skills training

programs, and the provision of productive assets, to aid their economic recovery and

promote self-sufficiency.

3. Contemporary Case Studies of Successful Zakat Distribution:

The analysis of contemporary case studies highlighted successful examples of zakat

distribution programs that have positively impacted vulnerable communities during times

of economic hardship or natural disasters. These case studies provided valuable lessons

and best practices that can be adapted to the context of the Covid-19 pandemic.

One notable example is the integration of zakat and Islamic microfinance initiatives

in Bangladesh, which has contributed to poverty alleviation and financial inclusion

among low-income households. (Shirazi et al., 2014). The synergy between zakat funds

and microfinance services has enabled the provision of micro-loans, skills training, and

productive assets, empowering beneficiaries to establish sustainable livelihoods.

Another inspiring case study is the role of zakat in supporting small businesses and

entrepreneurship during economic crises. In certain countries, zakat funds have been

channeled into providing interest-free loans, business advisory services, and market

access facilitation for small and medium enterprises (SMEs). This approach has not only

alleviated financial hardship but also fostered economic resilience and job creation.

4. Proposed Framework for Zakat Implementation as a Social Safety Net:

Based on the findings from the historical analysis, stakeholder insights, and

contemporary case studies, this research proposes a comprehensive framework for the

implementation of zakat as a social safety net in response to the COVID-19 pandemic:

a. Governance and Institutional Framework:

a) Establishment of a centralized zakat management authority or council at the

national or regional level, responsible for the collection, distribution, and

monitoring of zakat funds.

b) Collaboration and coordination between Islamic financial institutions, NGOs,

community-based organizations, and governmental entities to ensure effective and

efficient distribution channels.

c) Development of transparent and accountable governance structures, with clear

guidelines and auditing mechanisms to maintain public trust and confidence.

b. argeted Interventions and Support Mechanisms:

a) Income support programs through direct cash transfers or voucher systems to

provide immediate financial relief to affected individuals and households.

b) Provision of interest-free business loans, coupled with business advisory services

and market access facilitation, to support small and medium enterprises (SMEs)

and promote entrepreneurship.

c) Skills development and vocational training programs to enhance employability

and facilitate economic reintegration of those who have lost their livelihoods.

An Examination of Umar bin Khattab's Policy on Zakat as a Social Security Net in the Context

of Post-Covid-19 Pandemic in Indonesia

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4049

d) Distribution of productive assets, such as tools, equipment, or livestock, to enable

income-generating activities and promote self-sufficiency.

c. Alignment with Sustainable Development Goals (SDGs):

a) The proposed framework aligns with the United Nations Sustainable Development

Goals (SDGs), particularly Goal 1 (No Poverty), Goal 8 (Decent Work and

Economic Growth), and Goal 10 (Reduced Inequalities) (United Nations, 2015).

b) By leveraging zakat as a social safety net, countries can contribute to poverty

alleviation, promote inclusive economic growth, and reduce inequalities, while

upholding the Islamic values of solidarity, compassion, and social responsibility.

d. Integration of Technology and Data Analytics:

a) Utilization of digital platforms and mobile applications to streamline the collection

and distribution processes, ensuring transparency and accountability.

b) Deployment of data analytics and beneficiary mapping techniques to identify and

target the most vulnerable populations effectively.

c) Monitoring and evaluation mechanisms to assess the impact of zakat interventions

and ensure continuous improvement and adaptation to evolving needs.

By implementing this comprehensive framework, inspired by the wisdom of Umar

bin Khattab's zakat policies and adapted to the modern context, nations can harness the

transformative power of zakat to mitigate the economic impact of the COVID-19

pandemic. The proposed interventions, coupled with effective governance and

stakeholder collaboration, can foster financial inclusion, economic resilience, and

sustainable development for those most affected by the crisis.

Conclusion

The Covid-19 pandemic has caused severe economic impacts, including job losses,

business closures, and financial hardships. In such crises, a strong social safety net is

crucial to protect vulnerable groups and support recovery. This research explores the

potential of zakat, a form of Islamic wealth redistribution, as a social safety net, inspired

by the policies of Umar bin Khattab, the second caliph of Islam.

The study finds that adapting Umar’s zakat principles to modern contexts can

effectively address the pandemic's economic effects. Key recommendations include

establishing a centralized National Zakat Management Body, like Umar's Bayt al-Mal, to

enhance efficiency and accountability. Zakat should be distributed fairly to those hardest

hit, such as informal workers and small businesses, following principles of justice.

Economic empowerment initiatives, like revolving loans and skills training, can also help

zakat recipients gain financial independence. To ensure success, good governance,

collaboration between institutions, and the integration of digital platforms are essential

for efficiency and transparency. Implementing these measures aligns zakat with the UN's

Sustainable Development Goals, especially in reducing poverty and inequality, and

fostering economic growth. This research highlights the potential of Zakat to promote

economic resilience and sustainable development by modernizing Umar’s policies for

today's challenges.

Putri sholihatuz Zahra, Nurizal Ismail

Indonesian Journal of Social Technology, Vol. 5, No. 10, October 2024 4050

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