Assessing the Institutional Priority for Economic Resilience: A Comparative Study of Zakat Fund Allocation for Productive and Consumptive Sectors in Indonesian Provinces

Abstract

Purpose

This research aims to propose the Index of Resiliency Priority (IPR) and calculate it in each province in Indonesia.

Design/Methodology/Approach

This research uses a descriptive approach. It calculates the percentage of productive and consumptive zakat. Then the researcher finds the Index of Resiliency Priority.

Findings

Lampung, Central Sulawesi, and Riau are the top three in terms of IPR. Bali, Papua, and West Papua are the three lowest in terms of IPR.

Research limitations/implications

The IPR categorizes Operational Costs as part of the Consumptive Sector. In some provinces, a high percentage of Operational Costs may artificially depress the IPR, even though their Productive Funds are well-disbursed. This study does not separate the specific impact of Operational Costs on the IPR.

Practical implications

The top 3 provinces can serve as examples for other provinces to increase resilience.

Social implications

The province with the predicate of high resilience means that BAZNAS succeeds in eliminating poverty.

Originality/value

The creation of the Index of resilience priority using data of zakat allocation for six sectors.