International Journal of Islamic Economics (IJIE)
Vol 7 No 02 (2025): International Journal of Islamic Economics

The Impact of Zakat and Macroeconomics on Poverty in Indonesia: A Panel Data Analysis of 34 Provinces

Febrianto, M. Nanang (Unknown)
Herlina Wati (Unknown)
Zulfah Jannatul Karimah (Unknown)



Article Info

Publish Date
28 Dec 2025

Abstract

Introduction: Poverty is a multidimensional problem that requires integrated policies in its management as part of efforts to eradicate poverty. Objective: This study aims to examine the effects of zakat, gross domestic product, the open unemployment rate, and the Gini index on poverty across 34 provinces in Indonesia. Method: This study employed a quantitative, associative approach. The data are panel data from 34 provinces in Indonesia, covering 2019 to 2023, sourced from the Central Statistics Agency and the National Zakat Agency. Data analysis was conducted using a fixed-effects panel-data regression model.  Results: Zakat, Infaq, and Sedekah have a positive but insignificant effect on poverty. Gross Domestic Product has a negative but insignificant effect on poverty. Meanwhile, the Open Unemployment Rate and the Gini Index have positive and significant effects on poverty, indicating that increases in these variables are associated with higher poverty. Unemployment is driven by limited job opportunities, low skills, and limited experience, while the high Gini index (income inequality) stemming from unequal income distribution affects the cycle of poverty. Implication: The results can serve as a reference for developing plans and policies to optimize poverty alleviation, particularly in providing employment and inclusive income distribution.

Copyrights © 2025






Journal Info

Abbrev

IJIE

Publisher

Subject

Economics, Econometrics & Finance

Description

International Journal of Islamic Economics accepts manuscripts whose topics are in range of economic fields and employs standard economics analysis tools focusing on issues pertaining to Philosophy of Islamic Economics, Islamic Economic Thought, Islamic Economics and Contemporary Issues and Islamic ...