Analysis of the Influence of Zakat Distribution on Poverty Rates in Riau Province during the Covid-19 Pandemic

Authors

  • Firdaus Abd Rahman
  • Hamdi Agustin
  • Ellyan Sasraningsih
  • Zulhelmi
  • Ahmad Nizan Bin Mat Noor
  • Ismalaili Binti Ismail
  • Nik Azlina Binti Nik Abdullah
  • Ima Ilyani Binti Ibrahim

Abstract

The Covid 19 pandemic has an impact on increasing poverty rates in countries around the world. One of the institutions that plays a role in efforts to deal with the impact of Covid 19 is the zakat institution. National Zakat Agency (BAZNAS) and Amil Zakat Institute (LAZ). The purpose of this study is to analyze the effect of zakat distribution on the poverty rate in Indonesia and Malaysia during the Covid 19 pandemic. The issue raised in this study is the Covid 19 period which in an increase in the poverty rate while the amount of zakat collection and distribution of zakat increased significantly. This condition is expected to reduce the poverty rate. So that in this study adding the dummy variable of the Covid 19 period as additional knowledge for the topic of this study. The population in this study were all zakat management institutions in Indonesia. The research sample is zakat management institutions in Riau province. This study uses secondary data through library research from various publications. Secondary data taken for this research is times series data for 21 years starting from 2000 to 2020, with the consideration that 2000-2019 is the year when the economic conditions of countries are stable and 2020 where the economic conditions during Covid 19. Data processing using multiple regressions. The results of the study show that the results of the poverty rate have no effect during covid-19 and not during covid-19. The distribution of zakat for consumption, education, health and productive is significantly different during the Covid-19 period and not during the Covid-19 period. This shows that the amount of zakat distribution increased during the Covid-19 period because it was to help people who were experiencing difficulties at that time. Zakat funds collected (Z), Zakat Distribution for Consumption (ZDC), Zakat Distribution for Education (ZDE), Zakat Distribution for Health (ZDH) and Productive Zakat Distribution (ZDP) affect the poverty rate. These results indicate that zakat assistance is able to increase the welfare of mustahik and reduce the poverty index of mustahik. The national zakat agency (baznas) and amil zakat institute (laz) can increase the distribution of zakat because it can increase and help the welfare of mustahik so that the poverty rate is reduced.

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Published

2022-12-26