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

Al Berto, Muhammad (Unknown)
Mugiyati (Unknown)
Al-farisy, Muhammad Daffa (Unknown)



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, ...