Paper presented at Young Islamic Economic Forum (YIEF) 2017 in Conjuction with the 2nd Annual Islamic Finance Conference 23th - 24th August 2017, Yogyakarta, Indonesia

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 On the Effectiveness of Zakat Disbursement: Evidence from BAZNAS Beneficiaries in the Central Region of Indonesia  (Tabanan, East Kutai, and Gorontalo)

Mohamad Soleh Nurzaman

Faculty of Economics and Business, University of Indonesia
Center of Strategic Studies
The National Board of Zakat (BAZNAS)
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Wahyu Jatmiko
Center of Strategic Studies
The National Board of Zakat (BAZNAS)

Ninik Annisa
Center of Strategic Studies
The National Board of Zakat (BAZNAS)



This paper aims at examining the impact of productive-based zakat program distributed by BAZNAS to the Mustahik in the central regions of Indonesia; i.e. Tabanan (Bali), East Kutai (East Kalimantan), and Gorontalo. The poverty statistics of the regions are commonly higher than that in the average of the nation, requiring a form of intervention that is not always dependent on government social programs. This has been done through designing the productive-based zakat program that will assist Mustahik in establishing a business, or upgrading the scale of economies for their existing business. By using the National Zakat Index framework, this research provides an actual data on how far the achievement of the productive-based zakat program in improving the welfare of Mustahik. In doing so, a direct survey to Mustahik in three regions in Indonesia was conducted between October and November 2016. Our results show that the productive-based zakat distribution managed by BAZNAS in those regions is positively correlated to the alleviation of poverty of Mustahik, and thus improves the welfare both materially and spiritually. 

Keywords: Zakat, Mustahik, Productive-based Program, National Zakat Index

JEL Classification: O15, O53, P36

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