The Indonesian Journal of Islamic Economics Research
Vol. 7 No. 1 (2025)

The relevance of Muhammad Baqir Al-sadr’s thought on zakat distribution for poverty alleviation in Indonesia

Muhammad Al Berto (Sharia Economics Study Program, Faculty of Islamic Economics and Business, UIN Sunan Ampel Surabaya)
Mugiyati (Sharia Economics Study Program, Faculty of Islamic Economics and Business, UIN Sunan Ampel Surabaya)
Muhammad Daffa Al-farisy (Faculty of Economics and Management Sciences, International Islamic University Malaysia)



Article Info

Publish Date
17 Dec 2025

Abstract

Poverty remains a major challenge in Indonesia despite institutionalized zakat management. Muhammad Baqir al-Sadr conceptualizes zakat as a productive redistributive mechanism intended to promote long-term socioeconomic justice. This study assesses the effectiveness of zakat within this framework using the Autoregressive Distributed Lag (ARDL) approach with annual data from 2001–2023 and GDP as a control variable. The results indicate that zakat has a significant short-run effect, reducing poverty with its strongest impact appearing after a lag (coefficient = –0.131), although the effect weakens and reverses over time, reflecting a consumption-based distribution pattern. In contrast, GDP shows both short-run and long-run significance in lowering poverty, with a sustained negative long-term effect (coefficient = –0.855). These findings suggest that current Zakat implementation has not yet embodied al-Sadr’s productive model and requires governance reforms to strengthen its structural role in poverty alleviation.

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Journal Info

Abbrev

ijier

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Indonesian Journal of Islamic Economics Research ( IJIER) is a research journal in the discipline of Islamic economics which is expected to contribute to a new or state-of-the-art for academic development or real-world applications, or both. This journal encompasses original research articles, ...