Executive Summary

Borneo, the third-largest island in the world, is rich in biodiversity and cultural heritage. It is shared by three countries: Indonesia (Kalimantan), Malaysia (Sabah and Sarawak), and Brunei. However, Borneo faces environmental issues such as deforestation and land degradation due to logging and palm oil plantation activities. These challenges worsen poverty among local communities that depend on natural resources for their livelihoods. Islamic financial sources, particularly zakat, can serve as a solution to these problems. Zakat is an original system and instrument within the Islamic economic framework, designed to empower communities. Given Borneo’s vast land, abundant population, and rich natural resources, the island also holds immense zakat potential. The zakat potential in Borneo is estimated to be twice the zakat potential in Kalimantan alone, which stands at USD 1 billion. This significant zakat potential is expected to help address social issues on the island. This study recommends the establishment of a consultative zakat framework, involving zakat institutions from each country on Borneo. This collaboration aims to optimize zakat distribution, support poverty alleviation, and enhance community welfare through well-coordinated and sustainable programs across the region.

Zakat Empowerment, Social Welfare, and Sustainable Development in Borneo Region