Journal of Islamic Monetary Economics and Finance
Vol 4 No 1 (2018): AUGUST

ZAKAT FOR POVERTY ALLEVIATION AND INCOME INEQUALITY REDUCTION: WEST JAVA, INDONESIA

Qurroh Ayuniyyah (International Islamic University Malaysia, Malaysia)
Ataul Huq Pramanik (International Islamic University Malaysia, Malaysia)
Norma Md. Saad (International Islamic University Malaysia, Malaysia)
Muhammad Irwan Ariffin (International Islamic University Malaysia, Malaysia)



Article Info

Publish Date
28 Aug 2018

Abstract

This research aims to analyze the role of zakat distribution programs for poverty allevation and income inequality reduction among groups in urban and rural areas. It takes the case study of 1,309 zakat beneficiaries managed by the National Zakat Board of Indonesia (BAZNAS) as the coordinating zakat institution in Indonesia, in five different cities and regencies in West Java Province namely, Bogor, Depok and Sukabumi. The analytical tools used in this study are the modification of the Center of Islamic Business and Economic Studies (CIBEST) model, CHAID analysis, Deciles method and Gini coefficient. This study suggests that the present zakat distribution programs can significantly alleviate poverty and reduce income inequality among the observed zakat beneficiaries. It is also found that spiritual supervision and routine assistance form BAZNAS officers, informal education, family size, age and job of the respondents are the variables that are statistically significant in influencing the increase of the households’ monthly income and spirituality.

Copyrights © 2018






Journal Info

Abbrev

JIMF

Publisher

Subject

Economics, Econometrics & Finance

Description

JIMF is an international peer-reviewed and scientific journal which is published quarterly by Bank Indonesia Institute. JIMF is a type of scientific journal (e-journal) in Islamic economics, monetary, and finance. By involving a large research communiy in an innovative public peer-review process, ...