ABSTRACT
Cases of alleged misappropriation of aid funds or donations by individuals or philanthropic institutions often undermine the spirit of generosity among Indonesians. Previous studies have explored the role of zakat in economic empowerment, the regulation of Islamic philanthropy amid opportunities and challenges, and its contribution to improving welfare. In the context of philanthropy, Law 9/1961 and Law 23/2011 share a similar legal standing; however, Law 23/2011 addresses explicitly the Muslim community. Given the evolving landscape of global philanthropy, Law 9/1961 requires amendments to align with current legal and practical needs. Harmonising these two laws is expected to support the achievement of Sustainable Development Goals (SDGs), particularly in eradicating poverty, promoting justice, and building strong institutions. Strengthening blended funding mechanisms is essential to optimise the use of philanthropic funds, reduce financial risks, and encourage greater participation from non-public sectors in national development. This harmonisation aims to create a more transparent, accountable, and effective philanthropic ecosystem that contributes meaningfully to sustainable national growth.
