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Indonesia’s Generosity and the Need for Strategic Philanthropy to Combat Inequality

by Persyarikatan Muhammadiyah
5 months ago
in News
Reading Time: 2 mins read
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Indonesia’s Generosity and the Need for Strategic Philanthropy to Combat Inequality

MUHAMMADIYAH.OR.ID, JAKARTA – Professor Amelia Fauzia from UIN Syarif Hidayatullah Jakarta mentioned that Indonesia is often ranked as the most generous country in the world by the Charities Aid Foundation, yet social inequality remains a serious challenge. 

She explained that Indonesia’s strong culture of giving contributes to its reputation for generosity.

“We have a strong tradition of philanthropy, a culture of giving. This makes us naturally willing to help and fosters a high sense of solidarity,” said Amelia at the Kick-Off Program for Ramadan 1446 Hijri, hosted by the Muhammadiyah Department of Charity Management (Lazismu) at the National Library on February 13.

However, she noted that while zakat, infaq, and alms funds aim to improve people’s welfare, more effort is needed to maximize their impact. Citing a 2003 Social Trust survey, she pointed out that 98 percent of Indonesian Muslims paid zakat, and 99 percent gave to charity.

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Despite these high numbers, research shows that Indonesia’s philanthropy system is still not fully effective. Compared to other ASEAN countries like Singapore, Indonesia lags behind in governance and impact. Amelia emphasized the need for better management and collaboration.

“Our system needs improvement. Ensuring prosperity is not just the responsibility of philanthropic organizations. We should not place all the blame on zakat institutions or charity groups,” she said.

Amelia emphasized that effective philanthropy requires cooperation between three key sectors: the government, businesses, and civil society organizations. Weak coordination and a lack of strategic giving are major barriers to reducing inequality.

Amelia stressed the importance of shifting from short-term charitable donations to long-term programs that empower communities. Instead of simply distributing aid, she urged organizations to focus on sustainable solutions.

She expressed hope that Lazismu would take steps to improve the effectiveness of its programs through careful evaluation and research, ensuring that philanthropic efforts create real and lasting change.

Tags: Islamic philanthropy
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