Utilization of Zakat as a Means Empowering People In Indonesia (original) (raw)

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.

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...

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.

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

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.

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 as an Instrument of Eradicating Poverty (Indonesian Case)

International Journal of Nusantara Islam, 2012

This paper describes more clearly about the charity as an instrument of poverty alleviation. Said to be more pronounced because zakat is not only described from the aspect of Islamic law, but also from the aspect of Islamic Economics. Starting from the idea of a content analysis of two professors of Economic Development, Prahalad and Yuyun Wirasasmita, this paper reveals the fundamental aspects of the causes of poverty, namely culture, alienation and exploitation. In this paper, the charity manages to pack in a comprehensive manner to a complementary instrument, whether Islamic law, and even Islamic Economics. Among the novelties in this paper is a substantive interpretation of zakat which is connected with the theory of economic development, compared with tax and economic-mathematical analysis to find a charity to further its position in the study of economics. As for other things that were outlined in this paper is the normative aspects of zakat, as where made explicit, as an inst...

Evaluation of the Productive Zakat Program of BAZNAS: A Case Study from Western Indonesia

International Journal of Zakat

This paper aims to measure the impact of zakat distribution program implemented by Indonesia’s National Zakat Board (BAZNAS). The study intended to accurately assess the impact of the program for a potential extension to other zakat institutions. The studyadopted theCIBEST model developed by Beik and Arsyianti (2015), a quadrant model that combines the fulfillment of human needs that are both material and spiritual. The CIBEST consists of well-being index, material poverty index, spiritual poverty index, and absolute poverty index. The study has found that fund distribution by BAZNAS through the productive zakat program is quite effective in improving the welfare index of mustahik households in both material and spiritual aspects. Keywords: CIBEST model, Mustahik, Productive Zakat

Impact of Zakat Distribution as a Reduction In Poverty Case Study in the Province of West Sumatra

International Journal of Zakat

West Sumatra Province has a high Muslim population and also has a high amount of zakat funds even though it is not yet potential. Regulation of zakat which is different from other provinces in West Sumatra is the existence of compulsory zakat regulations which are directly deducted from salaries for the State Civil Apparatus (ASN). This has a positive impact on the collection of zakat funds in West Sumatra. This should be accompanied by the application of good zakat to reduce poverty. This study used questionnaire to obtain primary data in the province of West Sumatera. This study had 200 respondents, uses poverty indicators and the average time taken to exit poverty as an analysis tool. The results of this study indicate that zakat can be an instrument to reduce poverty, by empowering zakat effectively and increasing economic growth. This research also proves more concisely when the poor can exit of poverty if compared with the absence of zakat application. As for the implications ...