Muzakki Potentials’ Role in Alleviating Poverty (Study Case in Aceh)

Abstract

Zakat is an obligation in Islam which commands followers to donate a small amount of money to the poor, the needy and other particular recipients determined by the Qur'an. Since zakat is obligatory only for the rich, the system should be able to reduce inequality and poverty. Aceh has implemented a zakat management program since 2006; however, its impact has not been evident. This study aims to analyze the impact of potential muzakki on poverty reduction in Aceh and to identify the main factors contributing to its rise. By using socioeconomic survey data from the BPS-Statistics of Aceh Province, the potential of muzakki numbers can be estimated. Consequently, its impact on poverty will be analyzed. The method used to identify the variables affecting the muzakki numbers is multiple linear regression with the stepwise selection method. The results show that potential muzakki in Aceh have reached 3 million people and is able to reduce the poverty rate by approximately 3.25 percent. Subsequently, the economic size and the average number of dependents are the significant variables whose impact increase the number of muzakki. To maximize these opportunities, data and program synchronization between the government and zakat institutions is suggested.