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Faith‐Driven Alternative Social Financing: Governing Social Provision Through Islamic‐Based Communities in Indonesia

ABSTRACT

This study investigates how faith-based social funds generate independent but complementary social provision networks. Though it has long-standing contributions, faith-based social financing remains under explored in public administration scholarship, particularly from the Non-Western perspective. A qualitative method is employed through field observations, focus group discussions, and in-depth interviews in five regions of Indonesia to examine religious study circles and charity groups. The results show that Islamic charitable funds—zakat, waqf, sadaqah, and infaq—shaped by religious teachings and histories benefit poor populations un(der)served by government-led social provision in Indonesia. Islamic social finance, especially when organized by government-registered charitable organizations, promotes society welfare by fostering transparent, ethical, and accountable government within religious communities. Thus, there is a need to recognize and incorporate faith-based social financing contributions as an alternative legitimate governance tool into wider and more inclusive social policy frameworks.

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Posted in: Journal Article Abstracts on 05/14/2026 | Link to this post on IFP |
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