The Experiences of Zakat Managers in Islamic Financial Institutions in Indonesia: Challenges and Ethical Considerations

Abstract

The field of Islamic finance plays a crucial role in promoting social justice and economic equity through practices such as zakat management. However, the subjective experiences of zakat managers, who balance religious principles with practical challenges, remain underexplored in the literature. This gap highlights the need for research that goes beyond operational and financial aspects to capture the personal and ethical dimensions of their work. While previous studies focus on the logistical and financial aspects, there is limited research on how zakat managers interpret and navigate their roles. This study applies a phenomenological approach to examine the lived experiences of zakat managers in Islamic financial institutions in Indonesia, aiming to understand the meaning behind their decision-making processes. Through in-depth interviews and interpretative phenomenological analysis (IPA), a qualitative method that seeks to explore how individuals make sense of their experiences, the research reveals four key themes: challenges in zakat management, the importance of collaboration with external stakeholders, the role of technology, and the ethical considerations involved. The findings provide a deeper understanding of how zakat managers experience their roles, highlighting not only the theoretical significance but also practical implications for strengthening governance, enhancing stakeholder collaboration, and integrating technology in Islamic finance. These results contribute to a more comprehensive view of zakat management and suggest avenues for future research on the integration of technology and external partnerships in Islamic finance practices.