Zakat as an instrument of poverty reduction in Indonesia
Journal of Islamic Accounting and Business Research
ISSN: 1759-0817
Article publication date: 10 May 2023
Issue publication date: 29 March 2024
Abstract
Purpose
This study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.
Design/methodology/approach
This study used a qualitative method based on library research sourced from books, financial reports and another previous research.
Findings
The results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line.
Research limitations/implications
This study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia.
Originality/value
Given the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.
Keywords
Citation
Herianingrum, S., Supriani, I., Sukmana, R., Effendie, E., Widiastuti, T., Fauzi, Q. and Shofawati, A. (2024), "Zakat as an instrument of poverty reduction in Indonesia", Journal of Islamic Accounting and Business Research, Vol. 15 No. 4, pp. 643-660. https://doi.org/10.1108/JIABR-11-2021-0307
Publisher
:Emerald Publishing Limited
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