The Role of Fund Management in Supporting Green Economic Development: Evidence from LAZNAS IZI

Abstrak

The growing urgency of sustainable and inclusive development has encouraged Islamic social finance institutions to optimize fund management as an instrument for green economic development. This study explores the role of fund management in supporting environmentally conscious entrepreneurship through the Entrepreneurial Assistance Program at the National Amil Zakat Institution (LAZNAS IZI), Central Sulawesi Representative. The research aims to analyze how fund al__cpLocation, utilization, and accountability practices contribute to community empowerment and sustainability. A qualitative descriptive approach was employed, involving six key informants representing the Head of LAZNAS IZI Central Sulawesi, the Head of Finance and Administration, the Head of Empowerment, and the Head of Zakat Education and Partnership. Respondents were selected using purposive sampling based on their experience in fund management and empowerment programs. The findings reveal that LAZNAS IZI’s fund management system aligns with its mission of socio-economic empowerment and environmental stewardship. Principles of justice (ensuring fair distribution of zakat, infaq, and alms) and freedom (encouraging beneficiaries to utilize their skills for productive and eco-friendly activities) are embedded in implementation. However, limited entrepreneurial capacity among beneficiaries constrains program effectiveness. This study implies that transparent and goal-oriented fund management can significantly advance green economic development by integrating Islamic social finance mechanisms with sustainable entrepreneurship. The model can serve as a benchmark for other zakat institutions aiming to align economic empowerment with environmental sustainability