Income Distribution and Economic Justice in Islamic Economics

Abstract

Economic inequality remains a major problem in various countries, including Indonesia, characterized by unequal income distribution. This study aims to analyze the role of the distribution system in Islamic economics in addressing economic inequality, with a focus on the instruments of zakat, infaq, sedekah, and waqf. The research method used is a qualitative approach with a literature study (library research), utilizing secondary data obtained from reputable international journals and relevant scientific sources. Data analysis techniques were conducted descriptively and qualitatively by comparing the results of various previous studies. The results show that the Islamic distribution system has great potential in reducing economic inequality through a more equitable mechanism for wealth redistribution. Zakat has been proven to play a role in improving community welfare and reducing poverty levels, while other instruments such as waqf, infaq, and sedekah contribute to sustainable social and economic development. However, in practice, the effectiveness of this system still faces various obstacles, such as low public awareness, suboptimal institutional management, and limited use of technology. Thus, it can be concluded that the Islamic distribution system is a relevant solution to address economic inequality, but requires strengthening in implementation to achieve maximum impact. This research is expected to contribute to the development of Islamic economics and serve as a reference for policymakers in formulating more effective strategies for economic equality.