The Role of Zakat in Agricultural Production to Improve Food Security and Poverty Alleviation in Indonesia, 2018-2024

Muhammad Sifaudin (), Diyah Ariyani () and Nur Ayiyah ()
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Muhammad Sifaudin: Faculty of Islamic Economics and Business, State Islamic University of Salatiga
Diyah Ariyani: Faculty of Islamic Economics and Business, State Islamic University of Salatiga
Nur Ayiyah: Faculty of Economics and Business, Semarang State University

No 202503004, Gadjah Mada Economics Working Paper Series from Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada

Abstract: This study investigates the role of zakat utilization in enhancing food security and alleviating poverty in Indonesia from 2018 to 2024, with a specific focus on its contributions to the agricultural sector. Grounded in the legal framework provided by Law Number 23 of 2011 and Government Regulation Number 14 of 2014, which authorize zakat institutions such as the government, corporations and non-government organization to allocate zakat funds productively to critical sectors, this research addresses the pressing issue of poverty and food insecurity in Indonesia. As of 2024, approximately 9.03% of Indonesia’s population lives below the poverty line, with rural areas experiencing particularly high levels of food insecurity. Utilizing secondary data from BAZNAS, Statistics Indonesia (BPS), and 385 farmers receiving zakat responding to a semi-structured questionnaire, this study employs a mixed-methods approach, combining quantitative and qualitative analyses. Descriptive statistics, inferential statistics (NVIVO), and logistic regression analysis are used to examine the Food Security and Poverty indices. The findings reveal that effective management of zakat funds has the potential to reduce economic disparities and improve the livelihoods of impoverished farmers in rural areas. Furthermore, the study demonstrates that zakat allocations directed toward the agricultural sector can significantly enhance productivity and contribute to sustainable food security in the long term. These results underscore the importance of strategic zakat distribution as a tool for poverty alleviation and agricultural development in Indonesia.

Keywords: Zakat; agricultural production; food security; poverty alleviation; Indonesia. (search for similar items in EconPapers)
JEL-codes: D63 I32 Q18 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2025-03
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