Legal Harmonization of Islamic Social Finance Governance: Strengthening Zakat, Infaq, and Productive Waqf for Sustainable Community Economic Transformation

Abstract

This study examines the legal effectiveness of Islamic social finance governance in Indonesia by analyzing the regulatory framework governing zakat, waqf, and related Islamic social finance instruments. Employing a normative legal research approach, the study analyzes primary legal sources, including statutory regulations, government regulations, and relevant Sharia provisions, complemented by secondary literature and doctrinal analysis. The findings reveal that Indonesia possesses a comprehensive legal foundation that promotes legal certainty, accountability, Sharia compliance, and institutional legitimacy. Nevertheless, fragmented institutional coordination, sectoral regulations, and inconsistent supervisory mechanisms continue to hinder governance integration and reduce operational effectiveness. The study concludes that legal effectiveness depends not only on the existence of statutory regulations but also on the harmonization of governance structures, institutional collaboration, and integrated accountability systems. Theoretically, this research contributes to the development of an integrated legal governance framework that combines maqāṣid al-sharī'ah, justice, legal certainty, accountability, and good governance principles. Practically, the findings provide policy recommendations for strengthening regulatory harmonization, institutional coordination, supervisory integration, and governance standards to enhance the sustainability and socio-economic impact of Islamic social finance in Indonesia.