Analysis of the Impact of Productive Zakat on Poverty Reduction in the Padang Panjang City, West Sumatera

Abstract

Poverty is one of the main problems faced by developing countries including Indonesia. One instrument that can help to reduce poverty in Islam is zakat. This study analyzes the impact of
productive zakat in reducing the poverty of Mustahik households by approaching conditions before and after receiving zakat earning aids in Padang Panjang City. Padang Panjang City is one of the cities in West Sumatera, which has Local Regulation Number 7 Year 2008 about zakat management. In addition, the city has the highest Gini index compared with other cities. This research was conducted by using survey method through interview by using questionnaire. Sampling was done by purposive sampling technique. The analytical tools used in this study are CIBEST Model, Modification of HDI and Independence Index so as to produce an indicator of the impact of zakat called the Welfare Index of BAZNAS. It is found that the value of BAZNAS Welfare Index equals 0.51, which falls under quite good category.