IDEAS home Printed from https://ideas.repec.org/p/gme/wpaper/202503004.html
   My bibliography  Save this paper

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

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
    as

    Download full text from publisher

    File URL: https://drive.google.com/file/d/1NQwr8B8WHTPYHdVrf6kiwi0H418Q9ovV/view?usp=sharing
    File Function: First version, 2025
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gme:wpaper:202503004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dwi Rahmadi Nur Fathoni (email available below). General contact details of provider: https://edirc.repec.org/data/deugmid.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.