Strategy Model for Increasing the Potential of Zakat through the Crowdfunding-Zakat System to overcome Poverty in Indonesia (original) (raw)

Assessing the Role of Zakat for Poverty Alleviation in Indonesia

This paper analyzes, the role of zakat as an effective program to eradicate poverty. First, this paper examines the conventional approach to dealing with poverty, in particular it analyses the role of economic growth in relation to poverty and inequality. Then there is an analysis of the role and scope of zakat in dealing with the problem of poverty. Given the pervasiveness of poverty in Muslim countries, it is important to investigate how the institution of zakat can be used in contemporary times to alleviate poverty. The result of this study shows that although Indonesia began tackling poverty in the 1970s, its achievements in poverty reduction have been inadequate. This study also found that Indonesia still has serious problems in reducing poverty although the role and management of zakat in Indonesia is essentially successful in terms of the capability of zakat institutions to create pragmatic variations in zakat utilisation.

Productive Zakat for Community Empowerment: an Indonesian Context

2021

Indonesia is the largest Moslem country in the world. Paying zakat apart from being a means for Muslims to worship, zakat can also become a pillar of the people's economy when the zakat funds are properly managed and handed over to an amil zakat agency, amil zakat institution or an official baitul mal from the government, where if we look at the potential for raising funds Zakat to be managed productively has very good prospects for the economic progress of the people who are included in the category of entitled to receive assistance from this zakat fund. Therefore, the author here examines through this research using a qualitative descriptive method with data collection techniques in the form of documents, such as books or laws and regulations. This research is expected to provide a little knowledge benefit to readers in order to optimize the management of zakat funds into productive zakat which is one of our efforts to improve the level of the community's economy, the auth...

Distribution of Productive Zakat for Reducing Urban Poverty in Indonesia

International Journal of Innovation, Creativity and Change, 2021

Productive zakat is a strategic mechanism to help alleviate poverty. This study aims to explore the mechanism by which BAZNAS manages productive zakat in an attempt to help alleviate poverty in Indonesia. This study uses a qualitative exploratory approach. Documentary data pertaining to zakat distribution to mustahīq in the urban poor Surabaya was collected from the East Java BAZNAS office. Several interviews with the leaders of this office were also conducted to capture their views on the management of productive zakat. The results showed that to reduce the poverty of the urban poor, the BAZNAS applies a strategic distribution of productive zakat implemented through (1) a revolving capital loan to increase venture capital of the mustahīq members of MSMEs run under the qarḑ al-ḫasan contract, and (2) providing work equipment for starting or developing businesses. These mechanisms were effective in helping the poor for starting and expanding their business, hereby improving their wellbeing. It is suggested that amil zakat may increase the allocation of zakat distribution for productive purposes, rather than for one stop consumption. This study expands the understanding of the currently developed approach to zakat management and provides sound good practices in reducing poverty.

Investigating the Impact of Zakat on Poverty Alleviation: A Case from West Sumatra, Indonesia

2019

Muslim population in West Sumatra is vast, thus, it has significant potential of zakat. In the province, the regulation of compulsory zakat which is directly deducted from the local State Civil Apparatus (ASN) salaries has been practiced. This regulation has a positive impact on the collection of zakat funds in West Sumatra, yet the position of zakat in reducing poverty in the province demands a discussion in scholarly work. This study appointed 200 respondents and employed poverty indicators to investigate the impact of Zakat on poverty alleviation in the province. The results indicated that zakat promotes poverty reduction. This research also proves concisely the poor can exit the poverty line with Zakat. This work implies the role of government in supporting Zakat as monetary tool in poverty alleviation. Keyword: Zakat, West Sumatera, Exit Poverty, BAZNAS

Zakat for Economic Empowerment (Analyzing the Models, Strategy and Implications of Zakat Productive Program in Baitul Mal Aceh and Baznas Indonesia)

IQTISHADIA, 2018

Sustainable wellbeing is one of the goals of zakat distribution whereby the poor (<em>mustahiq</em>) are not only able to survive by having the basic needs fulfilled, but also are able to work and fulfill his needs and his family independently. The <em>mustahiq </em>independency is important to solve the problem of inequalities in society, marginalization, unemployemnt and poverty. This can only be achieved if zakat is able to used as a means for economic empowerment of the poor that would increase their capacity and enable them to become enterpreneur and hence able to fulfil their needs by themselves. This article attempts to observe various zakat productive programs initiated by zakat institutions in Indonesia and also analyze their implications in empowering the poors and increase their level of wellbeing. The case study in this paper is Baitul Mal Aceh and Baznas Indonesia.

Implications of Zakat Management on Improving the Welfare of The Poor (Case Study on Indonesian National Zakat Agency (BAZNAS) Gorontalo City)

Research on Humanities and Social Sciences, 2021

Poverty is still a problem in Indonesia. Not a few of the Indonesian people are still living below a decent standard of living. In everyday reality, there are still often homeless people and people who cannot meet their basic needs. Poverty becomes a big problem because it impacts the difficulty of accessing education, increasing criminality, and others. A high poverty rate is a form of economic equality. One of the efforts that can be made to create economic equality is through zakat. This study aims to uncover the implications of zakat management at the National Zakat Agency (BAZNAS) Gorontalo city in improving the welfare of the poor. The main problem is described that zakat is a very strategic Islamic Law in alleviating poverty and improving the welfare of the poor. This research is a field study with qualitative descriptive analysis. The approach used is a multidisciplinary approach, namely normative juridical approach, philosophical approach, theological and historical socio approach. The methods used are observation, interview, survey, and documentation. Furthermore, the data obtained is analyzed and displayed deductively and comparatively. The results showed that the implications of zakat management at the National Zakat Agency (BAZNAS) Gorontalo city in improving the welfare of the poor are seen in various innovations rolled out programs that are oriented towards improving the welfare of the poor. Innovation of the program in the form of empowerment of the poor through the utilization of productive zakat distribution, distribution of consumptive zakat, the synergy of zakat management with professional financial institutions, caring for disaster victims, Construction of Livable Houses (MAHAYANI), scholarships for outstanding children and the amaliah ramadhan movement.

Zakat Development: The Indonesia’s Experience

2011

As the third pillar of Islam, zakat has very strategic role in the development of the ummah. Indonesia, being the most populous Muslim country, experiences rapid zakat development for the last decade. This could be observed from both collection and distribution sides of zakat, which indicate remarkable improvement. However, Indonesia still faces a number of challenges including the wide gap between zakat potential and its actual collection. Hence, exchange of experience between Indonesia and other OIC member countries is highly needed.

Productive Zakat as a Financial Instrument in Economic Empowerment in Indonesia

International Journal of Economic, Business, Accounting, Agriculture Management and Sharia Administration (IJEBAS)

The Muslim population who has great potential in tithing is Indonesia. As the largest Muslim country in Asia, one of the financial instruments that should be appreciated is productive zakat. This program can not only help underprivileged people but also can make people who have been lacking in the economy and have always been recipients of zakat can change their positions into muzakki. This study describes the extent of research on productive zakat and its empowerment in Indonesia by obtaining the results of 375 published articles that have been eliminated according to search data from 2017 to 2021. Besides that, it also shows that productive zakat is very great in playing its role as one of the Islamic financial instruments in Indonesia in empowering and alleviating poverty through philanthropic institutions that shelter it.

Utilization of Zakat as a Means Empowering People In Indonesia

2020

Indonesia is one of the countries that has considerable population potential that can be used to support the achievement of national development goals and regional economic development. One of the main objectives of economic development is the reduction in the number of poor people. This is because poverty in some regions in Indonesia is still relatively high. One of the policies that can be taken is the utilization of zakat to finance MSMEs to improve people’s welfare. The analytical method used is descriptive explorative. The data used is secondary data. The results are supported by optimal and systematic empowerment of MSMEs with sources of funding from zakat which are expected to overcome income inequality and economic development. Empowerment of MSMEs who stand on the cooperative system will influence the partnership very closely. The government should participate so that poverty can be resolved immediately.

The Role of Zakat in Reducing the Poverty Gap

International Conference of Zakat

Poverty is a crucial problem in Indonesia. Poverty rate in Indonesia is high when compared to other countries in Southeast Asia. We need continuous efforts between government and society, one of them is by maximizing the potential of zakat in Indonesia. This paper aims to analyze the utilization of zakat funds on poverty reduction in Indonesia, especially through program Entrepreneurship Assistance in Desa Berdaya Rumah Zakat. There are 2323 samples taken from the monthly report Entrepreneurship Assistance. The method used is a descriptive method with a quantitative approach that aims to explain and analyze comprehensively the role of zakat in poverty alleviation and indicators. Analysis tools used such as headcount index, poverty gap, income gap, sen poverty index dan FGT index is based on three poverty indicators, namely the poverty line, had kifayah and the nisab of zakat. Distribution of zakat has an impact on increasing the income and business scale of the program recipients, w...