Zakat collection and distribution system and its impact on the economy of Indonesia

Ridwan, Muhtadi; Asnawi, Nur; Sutikno, Sigit

doi:10.5267/j.uscm.2019.6.001

Cited by 15 publications

(17 citation statements)

References 15 publications

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“…The secondary data include macroeconomic indicators, that is, inflation and gross regional domestic product (GRDP), while the primary data comprise the zakat empowerment programme, mustahiq business growth and welfare. Secondly, this study extends the investigation of the impact of zakat empowerment programmes on the growth of Indonesia's macroeconomic aggregation (Afendi, 2018;Ridwan et al, 2019a). The extension includes an examination of zakat and business assistance in influencing mustahiq's business growth and well-being.…”

Section: Introductionmentioning

confidence: 96%

Analyzing the impact of productive zakat on the welfare of zakat recipients

Mawardi

Widiastuti

Mustofa

et al. 2022

JIABR

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Purpose This study aims to investigate the effects of zakat and business assistance on the growth and well-being of mustahiqs (zakat recipients). This study also investigates the impact of macroeconomic variables on the welfare of mutahiqs. Design/methodology/approach The partial least squares-structural equation modelling method is used in this quantitative study, examining data from 137 mustahiqs. The data was collected from seven zakat institutions, which run effective zakat programmes to empower mustahiqs. Findings Zakat empowerment programmes and business assistantships positively impact the growth of mustahiqs’ businesses, beneficial to their well-being. Nevertheless, their well-being is unaffected by the proxy of the macroeconomy. Originality/value This study adds to the zakat literature by identifying the relationship between zakat, business growth, macroeconomic conditions and mustahiq welfare. Accordingly, this approach was made by combining primary and secondary data. This research offers a unique measure of welfare based on the concept of the Islamic objectives (Maqasid al-Shariah).

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Section: Introductionmentioning

confidence: 96%

Analyzing the impact of productive zakat on the welfare of zakat recipients

Mawardi

Widiastuti

Mustofa

et al. 2022

JIABR

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“…According to Ahmad (2019), zakat can play its due role in the promotion and development of the economic and social well-being through better education, health, food, and nutrition facilities to the poor and needy individuals in the society. There are various studies explored the idea of zakat collection and distribution in different economies of the world (Ridwana et al, 2019). As Ridwana et al (2019) stated the fact that the zakat management system must be integrated with the courtesy, plan of integrity, loyalty and as social institutions for the better growth and economic output.…”

Section: The Management and Distribution Of Zakat Based On Economicmentioning

confidence: 99%

“…There are various studies explored the idea of zakat collection and distribution in different economies of the world (Ridwana et al, 2019). As Ridwana et al (2019) stated the fact that the zakat management system must be integrated with the courtesy, plan of integrity, loyalty and as social institutions for the better growth and economic output.…”

Section: The Management and Distribution Of Zakat Based On Economicmentioning

confidence: 99%

Zakat Funds for Health and Medical Sector: Role and Strategy of Majlis Agama Islam Dan Adat Melayu Perak (MAIPk)

Hasbulah¹,

Noor²,

Bakar³

et al. 2022

IJARBSS

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Medical costs in Malaysia have increased drastically and have affected not only the government and the private health sectors but also the asnafs. As for Perak, MAIPk is responsible for administering and managing all zakat matters in its respective state. Therefore, this study is conducted based on three objectives; to explain the collection and distribution of zakat to the asnaf group who are burdened with the cost of medical treatment managed by MAIPk, to identify the form of distribution by MAIPk to asnaf who need assistance in the form of medical or health and to analyze the role and strategy of MAIPk in allocating zakat funds for the health and medical sector. This study adapted a qualitative study design, in which data were collected through library research approach and involved secondary sources as well as analyzed using content analysis and thematic methods. The results of the study found that in term of zakat collection, MAIPk has received a lot of business zakat in its institution. Meanwhile, in term of distribution of zakat, people on behalf of the MAIPk visited the families involved with medical aid and provided the aid to the needy asnaf families without any third-party intervention to avoid any kind of fraudulent. Besides, the form of distributions of medical or health by MAIPk to asnaf who need assistance were

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“…Considering the potential of Islamic social finance funds (e.g ZIS), which can contribute to the country's economy, previous research has proven this empirically. Most studies focus on Muslim-majority countries such as Pakistan (Azam et al, 2014), Malaysia (Khasandy & Badrudin, 2019), eight selected Muslim countries (Jedidia & Guerbouj, 2020), and Indonesia (Alghina et al, 2019;Arwani & Wahdati, 2020;Athoillah, 2018;Munfaati & Noviarita, 2023;Putriani et al, 2020;Ridlo & Wardani, 2020;Ridlo et al, 2021;Ridwan & Pimada, 2019;Suhendar et al, 2022;Supratman & Asih, 2022;Suprayitno, 2020;Triyawan et al, 2022;Wardani & Al Arif, 2021). Although research on the contribution of ZIS on GDP growth continues to grow, most studies use panel data with limited period research.…”

Section: Introductionmentioning

confidence: 99%

The contribution of Islamic social finance to economic growth in Indonesia

Siswantoro

Ikhwan

2023

RISFE

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Purpose – This study aims to identify the contribution of Islamic social finance (Zakat, Infaq, and Shadaqah or ZIS) to economic growth in Indonesia, both in the long-term and short-term models. Based on previous studies, government expenditure; investment; and trade openness are also included in the model as control variables.Methodology – Annual time series data for 21 years from 2002 to 2022 were analyzed using the Error Correction Model (ECM) approach to determine the long-term and short-term effects of independent variables on economic growth.Findings – The main findings of this study confirm that Islamic social finance (ZIS) is a financial instrument that benefits the economy. ZIS can be an alternative fund for overcoming various problems of the Muslim Ummah and revitalizing the economy, even more so in a country with a majority Muslim population like Indonesia where ZIS instruments such as Zakat are obligatory to be issued to able-bodied Muslims. The study results show that the effect of ZIS on economic growth in Indonesia is felt in the long term, while in the short term, it has no significant impact.Implication – This research provides insight for related parties (especially National Board of Zakat/Badan Amil Zakat Nasional, BAZNAS) further to optimize the potential of ZIS into productive sectors to improve the economy.Originality – Most previous studies used panel data with a limited period to estimate the effect of Islamic social finance on economic growth, while this research utilized time series data with the ECM approach for a longer period.

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Zakat collection and distribution system and its impact on the economy of Indonesia

Cited by 15 publications

References 15 publications

Analyzing the impact of productive zakat on the welfare of zakat recipients

Analyzing the impact of productive zakat on the welfare of zakat recipients

Zakat Funds for Health and Medical Sector: Role and Strategy of Majlis Agama Islam Dan Adat Melayu Perak (MAIPk)

The contribution of Islamic social finance to economic growth in Indonesia

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