INTERNATIONAL QUR’AN COMPETITION

MTQ STATE UNIVERSITY OF SURABAYA

SUPPORTING THE ISLAMIC PILLANTROPHY SECTOR AS A

EFFORT TO PREVENT THE ECONOMIC RECESSION IMPACT
OF THE COVID-19 PANDEMIC IN INDONESIA  

The Role of the Qur'an in Combating The COVID-19 Outbreak.

Abdul latif 21053046 2021

Rizki Ramadhan 21053180 2021

Nafrizal Amsal Telaumbanua 21053091 2021

 PADANG STATE OF UNIVERSITY

INDONESIA

2021

ORIGINALITY STATEMENT SHEET

Title of paper : Supporting The Islamic Pillantrophy Sector As A Effort To

Prevent The Economic Recession Impact Of The Covid-19
Pandemic In Indonesia  

Name of team leader : Abdul Latif

Members of team :

1. Rizki Ramadhan

2. Nafrizal Amsal Telaumbanua

We signed below hereby state that the paper with that title is original work created by the
authors and has never been published and/or contested outside of the INTERNATIONAL
QUR’AN COMPETITION paid by UKM MTQ, State University of Surabaya. Thus, we
make this statement with the truth, and if there is proven to be a violation therein, then we
are prepared to be disqualified from this competition as a form of our liability.

Padang, Saturday- October- 2021

Team leader

Abdul Latif

21053046

PERSONAL DATA FOR LEADER AND MEMBER OF TEAM

A Personal Details

1. Team Leader

1. Full Name Abdul Latif

Gender Male

3. Student Identification 21053046

Number

4. Department/Faculty Economic

5. Nationality Indonesia
 6. Place, Date of Birth Muaro, August 8th 2002

7. Email Address Abdullatifaja010@gmail.com

8. Phone Number 082215805433

2. Member Name 1

1. Full Name Rizki Ramadhan

2. Gender Male

3. Student Identification 21053180

Number

4. Department/Faculty Economic

5. Nationality Indonesia

6. Place, Date of Birth Padang Aro, November 19th 2001

7. Email Address officialrizki19@gmail.com

8. Phone Number 082285788355

3. Member Name 2

1. Full Name Nafrizal Amsal Telaumbanua

2. Gender Male
3. Student Identification 21053091

Number

4. Department/Faculty Economic

5. Nationality Indonesia

6. Place, Date of Birth Nias, September 29th 2000

7. Email Address xis.amsal@gmail.com

8. Phone Number 082384852682

 TABLE OF CONTENTS

COVER………………………………………………………………………………………...i

ORIGINAL STATEMENT SHEET…………………………………………………..….…...ii

PERSONAL DATA FOR LEADERS AND TEAM MEMBERS………………………...…iii

TABLE OF CONTENTS ………………………………………………………………….....iv

ABSTRACT …………………………………………………………………………….…….1

CHAPTER I INTRODUCTION………………………………………………………......…..3

1.1 Background….......................................................................................................................4
1.2  Problem Formulation……………………………………………………………….……..4
1.3  Research Objectives………………………………………………………………….....…4
1.4  Research Contribution……………………………………………………………..............4

CHAPTER II
DISCUSSION………………………………………………………………......5

2.1 Data Analysis……………………………………………………………………………..5 

2.2 Solving Problem Formulation…………………………………………………………….6 

CHAPTER III CLOSING……………………………………………………………….…...11

3.1 Conclusion………………………………………………………………………..……....12

3.2 Suggestions…………………………………………………………………………..…...12

REFERENCES………………………………………………………………………………….
 

SUPPORTING THE ISLAMIC PILLANTROPHY SECTOR AS A EFFORT TO

PREVENT THE ECONOMIC RECESSION IMPACT OF THE COVID-19
PANDEMIC IN INDONESIA  

Abdul Latif, Rizki Ramadhan And Nafrizal Amsal Telaumbanua

Department Of Economics, Padang State of University

Abdullatifaja010@gmail.com

ABSTRACT 

The spread of covid-19 is a phenomenon that is the main problem at this time,
disruption of economic activity in Indonesia is the impact caused by the spread of covid-
19.      

One way to prevent the deterioration of the national economy caused by COVID-19 is
to promote the philanthropy sector as a way to prevent an economic recession that could
potentially be caused by the Covid-19 Pandemic.

This study aims to (1) explain the impact of covid-19 on the Indonesian economy, (2)
the potential of Islamic philanthropy as a productive sector in preventing economic recession
during the covid-19 pandemic, (3) efforts to prevent the Indonesian economic recession from
the impact of covid-19 through activities philanthropy, (4) efforts that can be made by the
government in promoting the Islamic philanthropic sector in Indonesia as an effort to restore
the national economy.       

The method in this study is a literature review in describing the effect of

the welfare of the middle to lower income group population from the promotion of the
Islamic philanthropy sector, and a descriptive qualitative approach
with content analysis techniques (content analysis).       
 The results of the study show that Indonesia has great potential to promote
philanthropy as an effort to prevent economic recession, the result of this philanthropy
promotion mechanism makes GDP increase which is seen as an increase in people's welfare
and an increase in national production as a form of positive economic growth. The
government can carry out several policies that are able to stimulate the economy through
policies to promote philanthropy in various sectors. 

CHAPTER I

INTRODUCTION

1.1 Background

The Covid-19 pandemic is a phenomenon of the spread of a virus that has hit the whole

world, the spread of this case has a very large impact on life. The discovery of a new positive
confirmed case in Indonesia was initially discovered on March 2, 2020, this made the
government conduct testing on local residents, in the ongoing process the government was
forced to carry out large-scale social restrictions (PSBB) in several areas, and then the
national PSBB was implemented. China as the source country for the spread of this virus has
paralyzed the country's economy, this has had a lot of impact on other countries  which
establish trade relations with China, including Indonesia. This caused the global economy to
deteriorate.

In anticipation of the worsening global economy as a result of COVID-19 in

Indonesia, various policies and promotion of the productive sector are needed as a form of
government effort to safeguard the national economy. One of the efforts made is to promote
the Islamic philanthropy sector as an effort to prevent an economic recession due to
the impact of the COVID-19 pandemic in Indonesia.           

The philanthropic sector which has not been exploited optimally as a productive sector
has the ability to support the Indonesian economy during a pandemic, Islam teaches all its
adherents to help each other in distress in accordance with His word in Surah at Taubah verse
103 which explains the obligation to pay zakat as a cleaner sin and
share. The philanthropy mechanism has many advantages over other instruments that have
similarities to this, one of the advantages of this instrument is that there is no loss between the
giver and the recipient as a form of social care. The government has not optimally
implemented this sector in promoting this sector because of its enormous utilization for
the lower middle class community in helping to meet the needs of the community in the form
of philanthropic instruments provided.           

1.2 Problem Formulation 
Based on the description of the background above, the problem can be formulated as
follows:
1.2.1 The impact of covid-19 on the Indonesian economy
1.2.2 What is the potential of Islamic philanthropy as a productive sector in preventing
economic recession during the COVID-19 pandemic ? 
1.2.3 What are the efforts to prevent Indonesia's economic recession from the impact
of COVID-19 through philanthropic activities?
1.2.4 Efforts can be made by the government in promoting the Islamic philanthropic
sector in Indonesia as an effort to restore the national economy.
 
 
1.3 Research purposes
 1.3.1 To describe the impact of covid-19 on the Indonesian economy     

   1.3.2  To describe the potential of Islamic philanthropy as a productive sector

in preventing economic recession during the COVID-19 pandemic.      
 1.3.3  To describe efforts to prevent Indonesia's economic recession due to the COVID-
19 pandemic through philanthropic activities. 

1.3.4  To describe the efforts that the government can take in promoting
the Islamic philanthropy sector in Indonesia as an effort to restore
the national economy.

1.4 Research Contribution 

This research provides impetus for the government to be able to promote the Islamic
philanthropic sector in preventing a recession due to the COVID-19 pandemic .     

CHAPTER II

DISCUSSION

2.1 Data Analysis

Islamic philanthropy has the main goal of carrying out obligations to Allah by issuing

(ZIS) zakat, infaq and shadaqah, besides that it aims to strengthen the welfare of the
community. The loss of the gap that big in the
community who earn high with incomes low in the end will create a welfare society. Muslims
pay great attention to the problem of the gap between social classes, with Islamic
philanthropy it is expected to be able to reduce inequality. The strength of the teachings of
Islam philanthropy in accordance with the command of Allah mentioned in Al-Quran Al-
Tawbah letter: 60. This verse describes the distribution of Zakat in 8 groups,
eight groups are a group that is not able to meet the needs of both material and non-
material.                     
 In Islam the term philanthropy is related to the concept (ZIWAF). For example, in this
sector there are various kinds of instruments including zakat, infaq, alms and waqf. Because
of its voluntary nature, the government must issue policies that encourage people to
contribute. Can this sector really save Indonesia from the brink of recession? Of course, I can.

With donations from the rich to the poor, there is an increase in the consumption of
the poor so that they contribute to an increase in aggregate demand. This increase in
aggregate demand will save Indonesia from the brink of recession. Not only that, the increase
in aggregate demand from the philanthropic sector is different from the increase in aggregate
demand through fiscal and monetary stimulus. We don't have to worry about being in debt or
trapped in liquidity. If the philanthropic sector is optimized to drive aggregate demand. The
ultimate goal (saving Indonesia from the brink of recession) was both achieved but with
different long-term effects. 

In addition, the existing philanthropic institutions (BWI) the Indonesian Waqaf

agency and (BAZNAS) the national zakat charity agency better know the actual condition of
the community so that by utilizing this sector, the delivery of assistance can be carried out
more precisely and avoid the risk of Moral Hazard and Adverse Selection. 

Then if we compare from consumption behavior, the middle-upper economic

community has a smaller Marginal Propensity To Consume (MPC) than the lower-middle
economic community so that if we withdraw 1 rupiah from the rich to give to the poor, the
total economic welfare in general will continue to increase.

2.2 Solving Problem Formulation

2.2.1 Impact of Covid-19 on the Indonesian Economy. 

The problems caused by Covid-19 have had many impacts on the Indonesian

economy, including many workers being laid off and laying off more than 1.5 million people,
of which 90% were laid off and 10% were laid off. A total of 1.24 million formal workers
and 265,000 informal workers were affected by COVID-19 . The second impact is that
Indonesia's manufacturing PMI contracted and fell by 45.3 in March 2020, even though from
the last figure in August 2019, PMI manufacturing was still at 49. This manufacturing PMI
shows the performance of the processing industry, both in terms of production, new demand,
 to employment. Further data also shows a decrease in occupancy / placement at 6 thousand
hotels down to 50%, in addition to the loss of foreign exchange due to many hotels and the
tourism industry being closed due to COVID-19.           

From some of the data that the author reveals, it can be seen that many people have
lost their jobs due to COVID-19, either in the form of layoffs or being laid off. Many places
of economic activity are closed as a result of COVID-19, making it difficult for the MSME
sector to carry out their activities so that this has the potential to increase the number of
existing unemployed, the decline in people's income due to the absence of a fixed source of
income due to the Covid-19 contraction, causing the level of community welfare to fall which
leads to a decline. economic growth and social welfare.  

 2.2.2 Potential of Islamic Philanthropy as a Productive Sector in Preventing Economic

Recession in Indonesia     

Islamic philanthropy that is commensurate with ZIWAF has great potential that the
government can encourage in stimulating the economy through the components in it, zakat is
one of the components issued by every Muslim. Taubah verse 34, Plants and fruits that Allah
mentions in His word Surah Al-An`am Verse 141, Wealth as a result of profits in commerce
and crops Al Baqarah 267. Based on data from the National Amil Zakat Agency (BAZNAS). 

 Zakat Data

 years 2020 2019 Difference Percentage

comparison
Difference

Reception 305,347,256,942 248,342,677,327 57,004,579,615 22.9%

   

Distribution        
 254,336,407,086 196,459,014,908 57,877,392,178 22.9%

Comparison of 83.2% 79.1%    

Disbursements
 
to Receipts

 Infaq data

Years 2020 2019 Difference Percentage

comparison
Difference

Reception 76,346,790,474 41,548,746,869 34,798,043,605 83.7%

   

Distribution        

59,346,170,902 41,259,317,120 18,086,853,782 43.8%

Comparison of        
Disbursements
77.7%
to Receipts
99.3%

Amil Data

Year 2020 2019 Difference Percentage

comparison
Difference

Reception 26,798,411,296 25,943,373,338 855,037,958 3.29%

Distribution 68,787,977,722 58,688,842,810 10,099,134,912 17.2%

The amil data shows that the distribution is greater than the revenue. This indicates
that the amil burden has not been fully fulfilled. However, overall the data has increased both
in terms of revenue and distribution. The results of the Population Census (SP2020) in
September 2020 recorded a population of 270.20 million people. The population as a result of
the SP2020 increased by 32.56 million people compared to the results of the
SP2010. The World Bank also stated that per capita income was US$3,870 or Rp. 54,180,000
in 2020 at an exchange rate of 14,000. if the community does one of the components
(ZIWAF) with a nominal value of 2.5% of per capita income and an estimated Muslim
population of 250 million, the amount of funds available is IDR 338,625,000,000,000. This
proves that philanthropy has the potential to protect Indonesia from a potential economic
recession.             
 

2.2.3 Efforts to Prevent Indonesia's Economic Recession Impact of the Covid-

19 Pandemic Through Philanthropic Activities  

In its application, philanthropy can be directly given to the community through

periodicals or directly, in its application, philanthropy can stimulate a person's ability to fulfill
needs. In a real example many artists who provide assistance to the poor, is a form of
concrete promotion of philanthropy in society, it certainly helps the community poor to meet
daily needs, in other views when the donor gives little excess funds in the form of assistance
from the people who receive this aid would be very helpful. Increasing the income of people
who need it in promoting philanthropy will increase aggregate demand and fulfill various
kinds of goods needed by the community. When an increase in aggregate demand occurs,
there is an incentive for producers to increase production, as a result, national production
increases, producer income also increases, implicitly increasing production will make
the demand for labor increase, workers who were originally laid off will be able to work
again because an increase in company production is needed with assistance. The workforce,
on the other hand, the majority of workers are middle-class people who are heavily affected
by COVID-19, it will be greatly helped because they get a job again. And their well-being
increases. In the perspective of religious values, the philanthropic mechanism also has great
potential to be promoted. the suggestion to share makes the potential economic value of the
funds collected from (ZIWAF) including zakat, infaq, alms and waqf very useful if
distributed to people in need. There is an increase in factors caused by each component C, I,
G and NX. This will increase national income and decrease unemployment due to the
increase in the production process which will lead to an increase in the economy. Indirectly,
this will lead to an increase in real GDP and the welfare of the lower class from the bad
impact of COVID-19 .                            

  2.2.4 Efforts That the Government Can Do in Promoting the Islamic Philanthropy Sector in

Indonesia as a National Economic Recovery Policy.   

Government policies have not been effective in promoting philanthropy, making this

sector still not actively assisting the government in the welfare of the community. Even
though the government through the MUI has issued Law No. 23 regarding zakat processing,
this is not yet on target for the recipients. Therefore, to support the promotion of
philanthropy, the government can implement the following policies.       

1. Making rules for the community with excess funds to participate in philanthropic activities
in an association and making legal regulations.

this can be a good solution for people who are less able to fulfill their needs. People who
have excess funds will contribute to sustaining the economy and help underprivileged people
to support economic needs, if the government makes a rule or creates a group of
philanthropic activists this will make it easier for people who have excess funds to provide
assistance without hesitation given not right on target because there are already rules that
about philanthropy. The existence of legal standing will give confidence to other people or
institutions in philanthropic activities.   

2. An Appeal To Everyone To Help Each Other 

With a moral appeal to the community regarding the economic impact caused
by COVID-19 , it will certainly encourage the community to be moved in providing
assistance.
 CHAPTER III

CLOSING

 3.1 Conclusion

3.1.1 Indonesia's Potential in Philanthropy

Indonesia has a lot of potential that has great potential to improve the welfare of the
lower class community, that potential is in (ZIWAF) which has not been promoted
properly.     

31.2 Islamic Philanthropy Efforts In Preventing Indonesia's Economic Recession Due To The

COVID-19 Pandemic . 

In practice, philanthropy can be channeled directly to people in need or raised in the form of
associations of philanthropic activists and then distributed to recipients. Acceptance by the
less prosperous society increases consumption power and the increase in national GDP has an
impact on the economic cycle which in turn improves the welfare of the community in
preventing the economic recession due to the COVID-19 pandemic in Indonesia.  

3.1.3 Efforts that can be made by the government in promoting Islamic philanthropy in
Indonesia as a national economic recovery policy. 

Efforts that can be made by the government in promoting the philanthropic sector are
(1) diverting passive and unproductive funds to the philanthropic sector, (2) making rules for
people with excess funds to participate in philanthropic activities and making legal
regulations, (3) creating Indonesian diaspora philanthropic associations, (4) appeal to
everyone to help each other.

3.2 Suggestions

It is hoped that everyone will participate in promoting philanthropy as a form of

public concern in preventing a recession from the impact caused by COVID-19. The
government is also expected to contribute to various policies and regulations to promote
philanthropy as a powerful way to trigger economic growth and improve people's welfare.
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Ariani, M. (2015). THE POTENTIAL OF ISLAMIC PILLANTROPHY IN THE WELFARE

OF THE INDONESIAN COMMUNITY. Faculty of Business and Economics,
University of Surabaya , 105.

Fitra Rizal, HM (2021). ISLAMIC PHYLANTROPHY THE SOLUTION TO THE

PROBLEM OF POVERTY DUE TO THE COVID-19 PANDEMIC Journal of
Islamic Law and Social Institutions , 37.

Putra, MG (2020, August Monday). FREEDOM DURING A PANDEMIC: CAN THE

PHYLANTROPHY SECTOR SAVE INDONESIA FROM THE REcession
Abyss? pp. paragraphs 19-20.

Hanoatubun, S. (2020). IMPACT OF COVID-19 ON THE INDONESIAN

ECONOMY. Satya Wacana Christian University , 150-152.

Prof.Dr.KH.Noor Achmad, M. (2020, December Wednesday). BAZNAS Financial

Report. Retrieved from the National Amil Zakat Agency: https://baznas.go.id/keuangan/2020

(https://www.bps.go.id/pressrelease/2021/01/21/1854/hasil-sensus-penresident-2020.html,
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