https://journal.unismuh.ac.id/index.php/ar-ribh| Volume 06 No. 01 April 2023 39 Use Of Zakat Funds For Productive Purposes In Indonesia Abdul Khaliq abd.khaliqr@unismuh.ac.id State Islamic University of Alauddin Makasar Mukhtar Lutfi mukhar.lutfi@yahoo.com State Islamic University of Alauddin Makasar Rahmawati Muin rahmawati.muin@uin-alauddin.ac.id State Islamic University of Alauddin Makasar Asri Jaya Muhammadiyah University of Makassar asrijaya@unismuh.ac.id Keywords: Abstract Zakat, Productive Zakat regulations in Indonesia regulate that zakat can utilized For objective productive in framework handling the poor And enhancement quality people . Study This aim For study utilization And bookkeeping of zakat for objective productive as well as practiced by zakat institution. Zakat for objective productive usually associated with loan or fund rolling . it raises controversy among scholar . Difference the concept of zakat raises controversy about right owned by And zakat treatment . Writing This offer alternative utilization of zakat or infaq / sadaqat from perspective consideration fiqh And accounting . 1. INTRODUCTION Zakat, also known as the Islamic religious tax, is one of the five pillars of Islam which is mandatory for Muslims who meet certain criteria. In Islamic history, the word zakat has two meanings. Etymologically, zakat is derived from the Arabic word 'zaka' which means growth, cleanliness, goodness, grace, and pride. Terminologically, zakat refers to a specific amount of wealth that Allah SWT requires Muslims to give to those who are eligible. This means that zakat is a means of blessing, sanctification, goodness, and progress for one's wealth, as it is paid at a certain level and distributed to the rightful recipients. As mentioned in the Al-Quran (QS At-Taubah: 60), there are eight categories of people who are eligible to receive zakat, including the needy, the poor, zakat administrators, those whose hearts are inclined towards Islam (including new converts and Muslims who lack financial support), slaves, debtors (who have incurred debt due to basic needs), those in the way of Allah (Fi sabilillah), and travelers who are stranded (Ibn Sabil). Zakat serves two purposes, namely spiritual and economic. Spiritually, paying zakat is believed to purify and cleanse one's wealth from impurities, such as greed, selfishness, and arrogance. Therefore, individuals who pay zakat are considered to be free from these negative traits (Nur Barizah, 2007). Economically, paying zakat can have positive impacts on various economic dimensions, such as aggregate consumption, savings and investment, aggregate supply of labor and capital, poverty reduction, and economic growth (Nur Barizah & Abdul Rahim, 2011). In addition to tax funds, zakat funds are also a crucial financial source for Islamic countries (Diabi, 1993). Therefore, zakat can help create a prosperous society by redistributing income from the wealthy to the poor and increasing the purchasing power of individuals. The management of zakat is considered the most crucial aspect in determining the success of zakat institutions, as efficient and systematic management can ensure optimal utilization of zakat funds (Mutiara, Zakaria, & Zahri, 2013). Generally, zakat management involves two main activities, namely the collection and distribution of zakat funds (Ahmad, 2009). One of the primary objectives