PRODUCTIVE ZAKAT DISTRIBUTION MODEL TO REDUCE POVERTY IN INDONESIA
H. Benny Nur Miftahul Ulum

Economic and Bussiness Faculty, Airlangga University

Abstract

Purpose - This research aims to describe the productive zakat distribution model in Indonesia.

Design/methodology/approach - This study used a qualitative method based on library research sourced from journal and another previous research.

Findings - It was found that the distribution of productive zakat in Indonesia includes several models: skills training, providing business capital, providing work tools and business assistance.

Research limitations/implications - This research contributes in two ways: first, introducing a productive zakat distribution model in Indonesia. Second, encouraging Muzakki and Mustahik awareness regarding the role of Zakat in the Indonesian economy. This is expected to encourage their level of participation in optimizing the potential of zakat in Indonesia.

Originality/value - Given the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.

Keywords: Zakat, Distribution of zakat, Productive zakat, Empowerment, Poverty Alleviation, Sustainable development, Indonesia

Topic: Islamic social finance