The Power of Zakat in Contemporary Development: How Islamic Philanthropy Alleviates the Economic Impact of Toll Road Projects on MSMEs

This research examines the impact of toll road construction on Micro, Small, and Medium Enterprises (MSMEs) using Creative Destruction theory and contemporary Islamic philanthropy. The construction of toll roads, although accelerating distribution and accessibility, has had a significant negative im...

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Main Authors: Isnaini Harahap, Chuzaimah Batubara, Khairina Tambunan, Abdul Hakim
Format: Article
Language:English
Published: Fakultas Syariah IAIN Metro 2024-12-01
Series:Metro Islamic Law Review
Subjects:
Online Access:https://e-journal.metrouniv.ac.id/milrev/article/view/9391
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author Isnaini Harahap
Chuzaimah Batubara
Khairina Tambunan
Abdul Hakim
author_facet Isnaini Harahap
Chuzaimah Batubara
Khairina Tambunan
Abdul Hakim
author_sort Isnaini Harahap
collection DOAJ
description This research examines the impact of toll road construction on Micro, Small, and Medium Enterprises (MSMEs) using Creative Destruction theory and contemporary Islamic philanthropy. The construction of toll roads, although accelerating distribution and accessibility, has had a significant negative impact on MSMEs in various regions. This study explores how MSMEs, particularly in North Sumatra, Pekalongan, and Brebes, are experiencing a decline in income due to reduced vehicle traffic. In addition, this article highlights the role of zakat, infaq, and sadaqah as mechanisms to increase the resilience of MSMEs. This research uses a qualitative approach with observation methods, in-depth interviews, and a literature review, showing that Islamic philanthropy can support the adaptation and sustainability of MSMEs amidst infrastructure changes. The research results show that the negative impact of toll road construction is significant, especially for MSMEs that depend on vehicle traffic, such as dodol in Serdang Bedagai, batik in Pekalongan, and restaurants in Brebes. The turnover decline reached 70-80% in some regions. Many MSMEs were also forced to lay off their employees due to decreased income. However, this study also found that Islamic philanthropic practices such as zakat, infaq, and sadaqah play an important role in increasing the resilience of MSMEs. MSME players who regularly carry out zakat, infaq, and sadaqah can show better adaptation, including product diversification and transition to online business models. Thus, Islamic philanthropy provides short-term assistance and supports long-term positive economic changes for MSMEs.
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spelling doaj-art-9146741f2bb44edfb9f597ff359a97102025-08-20T02:38:33ZengFakultas Syariah IAIN MetroMetro Islamic Law Review2986-528X2024-12-013217419710.32332/milrev.v3i2.93916770The Power of Zakat in Contemporary Development: How Islamic Philanthropy Alleviates the Economic Impact of Toll Road Projects on MSMEsIsnaini Harahap0Chuzaimah Batubara1Khairina Tambunan2Abdul Hakim3Universitas Islam Negeri Sumatera Utara, IndonesiaUniversitas Islam Negeri Sumatera Utara, IndonesiaUniversitas Islam Negeri Sumatera Utara, IndonesiaUniversiti Malaya, Kuala Lumpur, MalaysiaThis research examines the impact of toll road construction on Micro, Small, and Medium Enterprises (MSMEs) using Creative Destruction theory and contemporary Islamic philanthropy. The construction of toll roads, although accelerating distribution and accessibility, has had a significant negative impact on MSMEs in various regions. This study explores how MSMEs, particularly in North Sumatra, Pekalongan, and Brebes, are experiencing a decline in income due to reduced vehicle traffic. In addition, this article highlights the role of zakat, infaq, and sadaqah as mechanisms to increase the resilience of MSMEs. This research uses a qualitative approach with observation methods, in-depth interviews, and a literature review, showing that Islamic philanthropy can support the adaptation and sustainability of MSMEs amidst infrastructure changes. The research results show that the negative impact of toll road construction is significant, especially for MSMEs that depend on vehicle traffic, such as dodol in Serdang Bedagai, batik in Pekalongan, and restaurants in Brebes. The turnover decline reached 70-80% in some regions. Many MSMEs were also forced to lay off their employees due to decreased income. However, this study also found that Islamic philanthropic practices such as zakat, infaq, and sadaqah play an important role in increasing the resilience of MSMEs. MSME players who regularly carry out zakat, infaq, and sadaqah can show better adaptation, including product diversification and transition to online business models. Thus, Islamic philanthropy provides short-term assistance and supports long-term positive economic changes for MSMEs.https://e-journal.metrouniv.ac.id/milrev/article/view/9391contemporary islamic philanthropy, economic resilience, msmes, toll road construction; zakat.
spellingShingle Isnaini Harahap
Chuzaimah Batubara
Khairina Tambunan
Abdul Hakim
The Power of Zakat in Contemporary Development: How Islamic Philanthropy Alleviates the Economic Impact of Toll Road Projects on MSMEs
Metro Islamic Law Review
contemporary islamic philanthropy, economic resilience, msmes, toll road construction; zakat.
title The Power of Zakat in Contemporary Development: How Islamic Philanthropy Alleviates the Economic Impact of Toll Road Projects on MSMEs
title_full The Power of Zakat in Contemporary Development: How Islamic Philanthropy Alleviates the Economic Impact of Toll Road Projects on MSMEs
title_fullStr The Power of Zakat in Contemporary Development: How Islamic Philanthropy Alleviates the Economic Impact of Toll Road Projects on MSMEs
title_full_unstemmed The Power of Zakat in Contemporary Development: How Islamic Philanthropy Alleviates the Economic Impact of Toll Road Projects on MSMEs
title_short The Power of Zakat in Contemporary Development: How Islamic Philanthropy Alleviates the Economic Impact of Toll Road Projects on MSMEs
title_sort power of zakat in contemporary development how islamic philanthropy alleviates the economic impact of toll road projects on msmes
topic contemporary islamic philanthropy, economic resilience, msmes, toll road construction; zakat.
url https://e-journal.metrouniv.ac.id/milrev/article/view/9391
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