ZAKAT FOR POVERTY ALLEVIATION AND INCOME INEQUALITY REDUCTION:WEST JAVA, INDONESIA

Qurroh Ayuniyyah (), Ataul Huq Pramanik (), Norma Md. Saad () and Muhammad Irwan Ariffin ()
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Qurroh Ayuniyyah: International Islamic University Malaysia
Ataul Huq Pramanik: International Islamic University Malaysia
Norma Md. Saad: International Islamic University Malaysia
Muhammad Irwan Ariffin: International Islamic University Malaysia

Journal of Islamic Monetary Economics and Finance, 2018, vol. 4, issue 1, 85-100

Abstract: This research aims to analyse the role of zakat distribution programmes in poverty alleviation and income inequality reduction among groups in urban and rural areas. It features a case study of 1,309 zakat beneficiaries managed by the National Zakat Board of Indonesia (BAZNAS) as the coordinating zakat institution in Indonesia, in different cities and regencies in West Java Province, namely Bogor, Depok and Sukabumi. The analytical tools used in this study are a modified Centre of Islamic Business and Economic Studies (CIBEST) model, the deciles method and the Gini coefficient. The study suggests that, in general, the present zakat distribution programmes can alleviate poverty and reduce income inequality among the observed zakat beneficiaries.

Keywords: Zakat; Poverty; Income Inequality (search for similar items in EconPapers)
JEL-codes: D64 Z12 Z18 (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:idn:jimfjn:v:4:y:2018:i:1e:p:85-100

DOI: 10.21098/jimf.v4i1.767

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