Amil Zakat as a Business Capital Financing Institution

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Wahyu Hidayat

Abstract

One of the objectives of zakat is prescribed as an effort to reduce social inequality as well as poverty alleviation efforts. The problem is, zakat still revolved around consumptive zakat, which is less effective in poverty alleviation efforts. Mustahik still relies his life on zakat issued by the rich every year. This paper aims to describe how zakat not only plays a role in solving problems in the form of meeting consumptive needs but can act as an institution that encourages mustahikproductivity. This study uses a descriptive analysis method with a literature-based research model using literature related to productive zakat. The author found one zakat institution that is quite successful in processing zakat funds given to mustahik in the form of capital. The capital provided to the mustahik can be rotated and make the mustahik change its status to muzaki. Such Amil Zakat agency should be further developed in Indonesia as an effort to eradicate poverty more massively.

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How to Cite
Hidayat, W. (2023, April 3). Amil Zakat as a Business Capital Financing Institution. Indonesian Conference of Zakat - Proceedings, 29-37. https://doi.org/https://doi.org/10.37706/iconz.2022.378
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