Author
Listed:
- 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)
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.
Suggested Citation
Muhammad Sifaudin & Diyah Ariyani & Nur Ayiyah, 2025.
"The Role of Zakat in Agricultural Production to Improve Food Security and Poverty Alleviation in Indonesia, 2018-2024,"
Gadjah Mada Economics Working Paper Series
202503004, Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada.
Handle:
RePEc:gme:wpaper:202503004
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JEL classification:
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
- I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
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