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Zakat For Poverty Alleviation And Income Inequality Reduction:West Java, Indonesia

Author

Listed:
  • 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)

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.

Suggested Citation

  • Qurroh Ayuniyyah & Ataul Huq Pramanik & Norma Md. Saad & Muhammad Irwan Ariffin, 2018. "Zakat For Poverty Alleviation And Income Inequality Reduction:West Java, Indonesia," Journal of Islamic Monetary Economics and Finance, Bank Indonesia, vol. 4(1), pages 85-100, August.
    • Handle: RePEc:idn:jimfjn:v:4:y:2018:i:1e:p:85-100
    DOI: https://doi.org/10.21098/jimf.v4i1.767
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    More about this item

    Keywords

    Zakat; Poverty; Income Inequality;
    All these keywords.

    JEL classification:

    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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