The Effectiveness of Zakat in Alleviating Poverty and Inequalities in Indonesia: A Measurement using a Newly Developed Technique

Weni Hawariyuni, Sharifah Al-Balushi, Naziruddin Abdullah

2019

Abstract

Zakat is one of important tools in eradicating poverty in Indonesia. Zakat will be collected from fortunate people and delivered to unfortunate people. This is obligation for Muslim people to contribute a certain amount of their wealth for unfortunate people as written in the Holy Al-Qurán. The concept of zakat is concentrate on social and economic justice in Muslim countries with the purpose to reduce the gap between rich and poor. As far as we know that poverty is still big matters in Indonesia. Thus, the role of zakat is very crucial in helping the Indonesia government in reducing poverty level in Indonesia. Furthermore, half of the Indonesian population remained within the national poverty line which is capped at Rp 292,951/month or USD 24.4 (World Bank, 2015). This situation is quite consistent with the Gini coefficient for Indonesia that was reported to have increased from 0.36 in 2005 to 0.42 in 2015, implying that the gap between the rich and the poor families had broadened. This study aims to measure the effectiveness of zakat institution in Indonesia by applying new technique measurement called Zein (Zakat Effectiveness Index). This study is expected to provide solution for policy maker, especially for zakat Institution and Government in Indonesia.

Paper Citation

in Harvard Style

Hawariyuni W., Al-Balushi S. and Abdullah N. (2019). The Effectiveness of Zakat in Alleviating Poverty and Inequalities in Indonesia: A Measurement using a Newly Developed Technique. In Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC, ISBN 978-989-758-498-5, pages 485-492. DOI: 10.5220/0009259304850492

in Bibtex Style

@conference{ebic19,
author={Weni Hawariyuni and Sharifah Al-Balushi and Naziruddin Abdullah},
title={The Effectiveness of Zakat in Alleviating Poverty and Inequalities in Indonesia: A Measurement using a Newly Developed Technique},
booktitle={Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,},
year={2019},
pages={485-492},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009259304850492},
isbn={978-989-758-498-5},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 2nd Economics and Business International Conference - Volume 1: EBIC,
TI - The Effectiveness of Zakat in Alleviating Poverty and Inequalities in Indonesia: A Measurement using a Newly Developed Technique
SN - 978-989-758-498-5
AU - Hawariyuni W.
AU - Al-Balushi S.
AU - Abdullah N.
PY - 2019
SP - 485
EP - 492
DO - 10.5220/0009259304850492