Change of the Poverty Rate Index on the Productive Zakat Impact: Case Study from BAZNAS Bantul Yogyakarta

Abstract

We show how changes in poverty measures can be applied empirically into growth of islamic philanthropy distribution via zakat, and we use the methodology to zakat commmunity development (ZCD) program in Bantul by BAZNAS during the 2016. The result is the number of productive zakat program beneficiaries whose income is below the poverty line in Bantul, DI Yogyakarta, before the implementation of productive zakat program are 61 people (H = 0.171). After the implementation, the number of poor people are 42 (H = 0.118), which means that the number of poor people decrease by 19 people (5.34 percent). The poverty gap (P1) of beneficiaries of productive zakat program in Bantul also decrease. The gap between poverty line and average income of beneficiaries is Rp 63,763 before the program, while the gap after the program is Rp 56,992. The income gap (I) is also decline from 0.197 to 0.169. Poverty severity of beneficiaries of productive zakat program in Bantul seen by Sen Index (P2) decrease from 0.093 to 0.062, while using Foster-Greer-Thorbecke Index (P3), the poverty severity decrease from 0.010 to 0.004.

JEL Classification: O15, O53, P36

Keywords: Zakat, Indonesia Poverty, Inequality Economics, Economics Growth