Journal of Islamic Economic Laws
Vol. 9 No. 01 (2026): January

The Impact of Zakat on the Economy and Poverty in Indonesia

Runtiningsih, Sri (Unknown)
Alirastra Budiantoro, Risanda (Unknown)
Syahrul Fauzi, Ahmad (Unknown)
Mustofa, Ubaedul (Unknown)
Syarifah, Lailatis (Unknown)
Rahmayani, Dwi (Unknown)

Article Info

Publish Date
26 Jan 2026

Abstract

This study aims to examine the impact of zakat and various socio-economic factors on regional economic growth and poverty levels in Indonesia. Using panel data from 34 provinces in Indonesia for the period 2019-2021. This study examines the complex relationships between zakat distribution and key macroeconomic indicators within an Islamic economic framework, using a common effects model for the economic growth equation and a fixed effects model for the poverty equation. The results indicate that zakat has a positive significant effect on economic growth and has a negative  significant effect on poverty. This research provides valuable insights into the potential role of zakat in addressing economic inequality and promoting sustainable development in Indonesia.

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Journal Info
Journal of Islamic Economic Laws
Website

Abbrev

jisel

Publisher

Universitas Muhammadiyah Surakarta

Subject

Religion Humanities Economics, Econometrics & Finance Law, Crime, Criminology & Criminal Justice Social Sciences

Description

Journal of Islamic Economic Laws (JISEL) is published by the Department of Islamic Economic Laws, Faculty of Islamic Studies, Universitas Muhammadiyah Surakarta. The journal provides a platform for scholarly research that bridges theoretical perspectives and practical developments in the field of ...