Synergy of Inflation, Investment, and ZIS in Encouraging Indonesia's Economic Growth

Abstract

Economic growth remains one of the key indicators used to assess a country's development success, reflecting its capacity to produce goods and services over a given period. Beyond conventional macroeconomic drivers such as inflation and investment, Islamic social-finance instruments particularly Zakat, Infaq, and Sadaqah (ZIS) are increasingly seen as important for wealth redistribution and inclusive growth in Muslim-majority countries such as Indonesia. However, ZIS is rarely examined together with inflation and investment in a single model, leaving it unclear how these three variables jointly and partially influence Indonesia's economic growth. The novelty of this study lies in integrating a religious-based redistribution instrument with two conventional macroeconomic variables within one regression framework, an approach not yet adequately explored, particularly using post-pandemic (2020-2023) data. The study applies a quantitative approach using multiple linear regression in SPSS version 27, including classical assumption tests, t-tests, F-tests, and the coefficient of determination. Secondary data on investment, inflation, and ZIS from 2020 to 2023 were obtained from the Central Statistics Agency (BPS), Bank Indonesia (BI), and BAZNAS. The results show that inflation, investment, and ZIS each have a significant partial effect on economic growth and, together, a significant simultaneous effect, explaining 82.9 percent of its variation (R² = 0.829). These findings imply that sustainable and equitable economic growth in Indonesia requires integrated management of price stability, investment promotion, and ZIS distribution, offering policymakers and zakat institutions a combined framework for designing more effective economic policy.