THE EFFECTIVENESS OF ZAKAT FUND DISTRIBUTION IN ALLEVIATING POVERTY (A CASE OF ZAKAT INSTITUTIONS IN INDONESIA)
Keywords:
Zakat, poverty alleviation, Indonesia, content analysis, annual reports, website information, social programs, health programs, education programs, consumption programs, housing programs, enterprise zone, regional investment, mustahiq network.Abstract
This paper explores the effectiveness of Zakat fund distribution in poverty alleviation in Indonesia.
The study utilized content analysis of annual reports and website information from 14 national Zakat
institutions. The analysis revealed that all institutions prioritized social, health, education, and consumption
programs; however, housing programs and house renovations were comparatively rare. Zakat institutions also
focused on building local economies and providing additional expertise through skills and leadership training.
However, none of the institutions had developed a mustahiq network, created an enterprise zone or regional
investment. The literature review highlighted the causes of poverty, including income uncertainty and limited
income, and provided anti-poverty programs to reduce poverty. The research findings can support Zakat
institutions' contributions to poverty alleviation, and the government should use the study recommendations
to develop a regulatory framework to grow Zakat institutions and maximize Zakat fund utilization.