Determinants of Poverty amongst Zakah Recipients in Indonesia: A Household Level Analysis
Strategies aimed to increase the impacts of zakah in alleviating poverty need to identify factors that are strongly associated with poverty and subsequently amenable to zakah interventions. However, existing empirical studies related to zakah rarely highlight this issue. This study, therefore, examine the determinants of poverty amongst zakah recipients in Indonesia in order to enhance effectiveness of zakah targeting in alleviating poverty in the world’s largest Muslim country. To achieve the objective, the study collected primary data of the households receiving zakah assistance in Greater Jakarta Indonesia and utilized a logistic regression model to analyse the determinants of poverty amongst the recipients. The main result suggests that lower age, lower education, less formal occupation, smaller households size and non-economic zakah assistance were related to a higher probability of being poor. The results suggest that these groups of people should be the main target of zakah interventions in Indonesia. The findings should be taken into account by zakah organizations, government and other relevant institutions to enhance the impacts of zakah in alleviating poverty not only in Indonesia but also in other Muslim countries.
___
- Achia, T. and A. Wangombe (2010). "A logistic regression model to identify key determinants of
poverty using demographic and health survey data." European Journal of Social Sciences 13(1):
38-45.
Ahmad, Z. (1991). Islam, Poverty and Income Distribution: A Discussion of the Distinctive Islamic
Approach to Eradication of Poverty and Achievement of an Equitable Distribution of Income
and Wealth. Leicester, Islamic Foundation.
Ahmed, F. (2004). Practices of poverty measurement and poverty profile of Bangladesh. Manila, Asian
Development Bank.
Ahmed, H. (2004). The Role of Zakah and Awqaf in Poverty Alleviation. Jeddah, Islamic Research and
Training Institute, Islamic Development Bank.
Al-Qardawi, Y. (2000). Fiqh Al Zakah: A Comparative Study of Zakah, Regulations and Philosophy
in the Light of Qur an and Sunnah. Jeddah, King Abdulaziz University.
Al Qardawi, Y. (2000). Fiqh Al Zakah: A Comparative Study of Zakah, Regulations and Philosophy
in the Light of Qur an and Sunnah, King Abdulaziz University.
Alisjahbana, A. and A. A. Yusuf (2003). Poverty Dynamics in Indonesia: Panel Data Evidence.
Department of Economics, Padjadjaran University Working Paper.
Arif, G. (2006). Targeting Efficiency of Poverty Reduction Programs in Pakistan. Manila, Asia
Development Bank.
Baiyegunhi, L. and G. C. Fraser (2010). Determinants of household poverty dynamics in rural regions
of the Eastern Cape Province, South Africa. The Joint 3rd African Association of Agricultural
Economists (AAAE) and 48th Agricultural Economists Association of South Africa (AEASA),
Cape Town, South Africa.
BAZNAS (2017). Outlook Zakat Indonesia 2017. I. S. Beik. Jakarta, Puskas BAZNAS.
Beik, I. (2010). Economic Role of Zakat in Reducing Poverty and Income Inequality in the Province of
DKI Jakarta, Indonesia: Case Study of the Government Board of Zakat and Dompet Dhuafa
Republika. PhD, International Islamic University of Malaysia.
Beik, I. (2010). Peran Zakat Mengentaskan Kemiskinan dan Kesenjangan. Republika (Iqtishodia
Journal Section) Jakarta, Republika: 5.
Chapra, M. (2000). The Future of Economics: An Islamic Perspective. Leicester, Islamic Foundation.
Coulombe, H. and A. McKay (1996). "Modeling determinants of poverty in Mauritania." World
Development 24(6): 1015-1031.
Dartanto, T. and Nurkholis (2013). "The determinants of poverty dynamics in Indonesia: evidence from
panel data." Bulletin of Indonesian Economic Studies 49(1): 61-84.
Davis, P. and B. Baulch (2011). "Parallel realities: Exploring poverty dynamics using mixed methods in
rural Bangladesh." The Journal of Development Studies 47(1): 118-142.
Deininger, K. and J. Okidi (2003). "Growth and poverty reduction in Uganda, 1999–2000: panel data
evidence." Development policy review 21(4): 481-509.
Emmett, T. (2006). Disability, poverty, gender and race. Cape Town, Human Science Research Council
Press.
Jalan, J. and M. Ravallion (1998). Determinants of transient and chronic poverty: evidence from rural
China. Washington, World Bank.
Jalan, J. and M. Ravallion (1998). Determinants of transient and chronic poverty: evidence from rural
China, World Bank World Bank Working Paper
Kahf, M. (2000). Zakah management in some Muslim societies. Jeddah, Islamic Research and Training
Institute, Islamic Development Bank.
Kristjanson, P., N. Mango, et al. (2010). "Understanding poverty dynamics in Kenya." Journal of
International Development 22(7): 978-996.
Lawson, D., A. McKay, et al. (2006). "Poverty persistence and transitions in Uganda: a combined
qualitative and quantitative analysis." The Journal of Development Studies 42(7): 1225-1251.
Mango, N., J. Cheng’ole, et al. (2004). Social aspects of dynamic poverty traps: cases from Vihiga,
Baringo and Marsabit Districts, Kenya. Collaborative Research Support Project on Broadening
Access and Strengthening Input Systems. Addis Ababa, Organization for Social Science Research
in Eastern and Southern Africa.
McCulloch, N. and B. Baulch (2000). "Simulating the impact of policy upon chronic and transitory
poverty in rural Pakistan." The Journal of Development Studies 36(6): 100-130.
Mukherjee, S. and T. Benson (2003). "The determinants of poverty in Malawi, 1998." World
Development 31(2): 339-358.
Nurzaman, M. S. (2011). Zakat and Human Development: An Empirical Analysis on Poverty
Alleviation in Jakarta, Indonesia. International Conference on Islamic Economics. Doha, Qatar.
Pereire, K. (2007). Thailand’s Zakat Funds Bill Regulating charities with sensitivity. Singapore,
Rajaratnam School of International Studies.
Piliyanti, I., M. Toro, et al. (2013). Zakat for Productive Sector: Study of Zakat Management
Organization in Surakarta Indonesia. Poverty Alleviation and Islamic Economics & Finance:
Current Issues and Future Prospects. Durham, United Kingdom.
Rahman, M. (2013). "Household Characteristics And Poverty: A Logistic Regression Analysis." The
Journal of Developing Areas 47(1): 303-317.
Rahman, M. A. (2013). "Household Characteristics And Poverty: A Logistic Regression Analysis." The
Journal of Developing Areas 47(1): 303-317.
Salih, S. A. (1999). The Challenges of Poverty Alleviation in IDB Member Countries. Jeddah, Islamic
Research and Training Institute, Islamic Development Bank.
Selim, S. (2016). "Socio-Economic Determinants of Poverty in Turkey: Panel Logit Approach."
International Journal of Statistics & Economics™ 17(3): 71-84.
Sirageldin, I. (2000). "Elimination of Poverty: Challenges and Islamic Strategies." Islamic Economic
Studies 8(1): 1-16.
Sumarto, S., W. Widyanti, et al. (2008). Multidimensional Poverty in Indonesia: Trends, Interventions
and Lesson Learned. Waseda, Waseda University Global COE Program, Global Institute for
Asian Regional Integration.
Suryahadi, A., A. Yumna, et al. (2010). Reviews of Government's Poverty Reduction Strategies, Policies
and Programs in Indonesia. Jakarta, SMERU Research Institute.
van Edig, X. and S. Schwarze (2012). "Short-term poverty dynamics of rural households: Evidence from
Central Sulawesi, Indonesia." Journal of Agriculture and Rural Development in the Tropics and
Subtropics (JARTS) 112(2): 141-155.
Wedgwood, R. (2007). "Education and poverty reduction in Tanzania." International Journal of
Educational Development 27(4): 383-396.
World Bank (2006). Making the New Indonesia Work for the Poor. Washington, World Bank.
Yumna, A. and M. Clarke (2011). Integrating zakat and Islamic charities with microfinance initiative
in the purpose of poverty alleviation in Indonesia. The 8th International Conference on Islamic
Economics and Finance, Doha, Qatar.