Baitul Mal Management in Social and Economic Support for The Aceh Community

Abstract

Baitul Mal is an Islamic financial institution whose objective is to distribute wealth to the needy and its management faces many challenges in the modern economic and social context. This study aims to identify the major challenges
faced in contemporary management of Baitul Mal. This study used descriptive
analysis to evaluate literature and related data, and conducted interviews with
Baitul Mal managers, indigenous communities, and entrepreneurship experts.
Research shows that one of the biggest challenges in solving the Baitul Mal
problem is the imbalance between economic growth and wealth distribution. In
a modern economic context that often leads to greater social inequality, Baitul
Mal's management often struggles to ensure fair and equitable distribution. In
addition, economic globalization is also a factor complicating the management
of Baitul Mal. The integration of global markets has expanded the scope of
financial transactions and requires more complex management strategies to
ensure compliance  with  Islamic  principles  in an  increasingly  globally
interconnected context. Other challenges include demographic changes, with
increasing and diverse populations making it difficult to identify and meet
diverse needs. At the same time, technological changes have also impacted the
way Baitul Mal is managed, requiring the adoption of more advanced
information and communication technologies to increase efficiency and
transparency. In short, the management of Baitul Mal faces complex and diverse
challenges in the modern economic and social era. Addressing these challenges
requires a comprehensive and innovative approach that takes into account
Islamic principles and the changing needs of society.