The Role of Zakat in Reducing the Poverty Gap Case Study in Desa Berdaya Rumah Zakat

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Ulfah - Choirunisa Sendi Permadia Aditya Rahmat Gunawan

Abstract

Poverty is a crucial problem in Indonesia. Poverty rate in Indonesia is high when compared to other countries in Southeast Asia. We need continuous efforts between government and society, one of them is by maximizing the potential of zakat in Indonesia. This paper aims to analyze the utilization of zakat funds on poverty reduction in Indonesia, especially through program Entrepreneurship Assistance in Desa Berdaya Rumah Zakat. There are 2323 samples taken from the monthly report Entrepreneurship Assistance. The method used is a descriptive method with a quantitative approach that aims to explain and analyze comprehensively the role of zakat in poverty alleviation and indicators. Analysis tools used such as headcount index, poverty gap, income gap, sen poverty index dan FGT index is based on three poverty indicators, namely the poverty line, had kifayah and the nisab of zakat. Distribution of zakat has an impact on increasing the income and business scale of the program recipients, with the result that reducing the depth and severity of poverty in Indonesia

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How to Cite
Choirunisa, U., Permadia, S., & Gunawan, A. (2020, October 26). The Role of Zakat in Reducing the Poverty Gap. International Conference of Zakat, 243-254. https://doi.org/https://doi.org/10.37706/iconz.2020.206
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