The Influence of Zakat on Economic Growth and Welfare Society in Indonesia

Elleriz Aisha Khasandy(1*), Rudy Badrudin(2),

(1) Indonesia Financial Services Authority
(2) STIE YKPN Yogyakarta
(*) Corresponding Author

Abstract


Indonesia as a one of the most significant Muslim population in the world has developed zakat rapidly; it is shown by the development of the zakat regulation and establishes of Badan Amil Zakat Nasional (BAZNAS). Zakat has many benefit for economic both of macro and micro aspect, such as foster inclusive economic growth. The objective of this study are 1) to examine the influence of zakat on economic growth and welfare society which uses 3 (three) indicators i.e.HDI, Percentage of Poor People, and GINI Index and 2) to investigate whether items of Theory Planned Behavior influence of zakat payment. The researcher used Structural Equation Model (SEM) with PLS software. The result showed that zakat in Indonesia does not influence economic growth and welfare society. Besides that, welfare society Indonesia as a developing country has a negative value to HDI and GINI index but has a positive value to Percentage of Poor People.


Keywords


zakat; growth, welfare; planned behavior

Full Text:

PDF

References


Ajzen, I. (1991). The Theory of Planned Behavior. Organizational Behaviour and Human Decision Processes, 50(2): 179-211.

Al-Mamun, A., & Haque, A. (2015). Perception of Muslim Consumers towards Tax Deduction through Zakat in Malaysia: An Empirical Investigation of Muslims in Malaysia. Proceeding The First International Conference On Shari’ah Oriented Public Policy in Islamic Economic System (ICOSOPP 2015), pp.532-549. Banda Aceh.

Azam, M., Iqbal, N., & Tayyab, M. (2014). Zakat and Economic Development: Micro and Macro Level Evidence from Pakistan. Bulletin of Business and Economics, 3(2), 85-95.

Badan Amil Zakat Nasional & Bank Indonesia. (2014). Towards the Establishment of an Efficient and Sound Zakat System, Jakarta.

Badrudin, R. (2015). Evaluation of The Specific Allocation Fund for Indonesian Society Welfare. International Journal of Applied Business and Economic Research, 13(7), 5609-5626.

Badrudin, R. & Siregar, B. (2015). The Evaluation of the Implementation of Regional Autonomy in Indonesia. Economic Journal of Emerging Market, 7(1), 1-11.

Bakar, A, Barizah, N. & Abdul Rashid, H.M. (2010). Motivations of Paying Zakat on Income: Evidence from Malaysia. International Journal of Economics and Finance. 2(3), 76-84.

Bank Indonesia & P3EI FE UII. (2016). Pengelolaan Zakat yang Efektif: Konsep dan Praktik di Berbagai Negara, Department of Syariah Economic Bank of Indonesia and Faculty of the Economic Islamic University of Indonesia.

Bappenas. (2015). Masterplan for Indonesian Islamic Financial Architecture, Jakarta.

Bin-Nashwan, S. A., Abdul-Jabbar, H. & Romle, A. R. (2016). The Application of Theory of Planned Behaviour on Business Zakah Compliance in Yemen: A Proposed Framework. Middle-East Journal of Scientific Research, 24, 2052-2057.

Division on Publication and The Center of Strategic Research National Board of Zakat. (2017). Outlook Zakat Indonesia, Jakarta: National Board of Zakat.

Eavani, F., Nazari, K., & Emami, M. (2012). Social Audit: From Theory To Practice. Journal of Applied Sciences Research, 8(2), 1174-1179.

Firdaus, M. (2012). Economic Estimation and Determinations of Zakat Potential in Indonesia. Working Paper. Series No. 1433-07. Jeddah: IRTI.

Firmansyah. (2009). Potensi dan Peran Zakat Dalam Mengatasi Kemiskinan: Studi Kasus Jawa Barat dan Jawa Timur. Jakarta: LIPI.

Haron, M. S. & Rahman, R. (2016). Pengagihan Zakat dalam Konteks Kesejahteraan Masyarakat Islam: Satu Tinjauan Berasaskan Maqasid Al-Syari’ah. Labuan e-Journal of Muamalat and Society, 10, 129-140.

Hoque, N., Khan, M., & Mohammad, K. (2015). Poverty Alleviation by Zakah in a Transitional Economy: a Small Business Entrepreneurial Framework. Journal of Global Entrepreneurship Research, 5(7), 1-20.

Huda, N., Rini, N., Mardoni, Y. & Putra, P. (2011). The Analysis of Attitudes, Subjective Norms, and Behavioral Control on Muzakki’s Intention to Pay Zakah. International Journal of Business and Social Science, 3(22), 69-78.

Jalil, A., Ramli, A., & Shahwan, S. (2014). The Four Introductory Theories of Fiqh Muamalat. Wisdom Publication.

Kahf, M. (1987). Zakah Estimation in Some Muslim Countries. Jeddah: IRTI –IDB. Available at http://monzer.kahf.com/papers.html.

Khodabakhshi, A. (2011). The Relationship between GDP and Human Development Indices in India. International Journal of Trade, Economics, and Finance, 2(3), 251-253.

Kurniawati. (2004). Kedermawanan kaum Muslimin: Potensi Dan Realita Zakat Masyarakat di Indonesia. Jakarta: Piramedia.

Kusuma, M. W. & Badrudin, R. (2016). Fiscal Decentralization Effect on Economic Growth in Bali. Economic Journal of Emerging Market, 8(2), 136-147.

Mahat, N., & Warokka, A. (2013). Investigation on Zakat as an Indicator for Moslem Countries’ Economic Growth. Journal Global Business Advancement, 6(1), 50-58.

Muhammad, S., & Saad, R. (2016). The Impact of Public Governance Quality, Accountability, and Effectiveness on Intention to Pay Zakat: Moderating Effect of Trust on Zakat Institutions. International Journal of Management Research & Review, 6(1), 1-8.

Mukhlis, A. B. & Syauqi, I. (2013). Analisis Faktor-faktor yang Mempengaruhi Tingkat Kepatuhan Membayar Zakat: Studi Kasus Kabupaten Bogor. Jurnal al-Muzara’ah, 1(1), 20-33.

Naguib, C. (2015). The Relationship between Inequality and GDP Growth: an Empirical Approach. Luxembourg Income Study (LIS) Working Paper. Series No. 631, Luxembourg: Luxembourg Income Study (LIS).

Rahim, S., & Hanani, K. (2014). An Economic Research on Zakat Compliance Among Muslim's Staff in Unimas. International Conference on Masjid, Zakat, and Waqf, 53-65. Kuala Lumpur.

Sarea, A. (2012). Zakat as a Benchmark to Evaluate Economic Growth: An Alternative Approach. International Journal of Business and Social Science, 3(18), 242-245.

Shaikh, S. A. & Ismail, A. G. (2017). Role Zakat in Sustainable Development Goals. International Journal of Zakat, 2(2), 1-9.

Shirazi, N. S. (2014). Integrating Zakāt and Waqf into the Poverty Reduction Strategy of the IDB Member Countries. Islamic Economic Studies, 22(1), 79-108.

Sitorus, R. (2015). Baznas Targetkan Dana Zakat 2015 sebesar Rp. 4.8 Triliun. Available at http://industri.bisnis.com/read/20150630/12/448787/baznas-targetkan-dana-zakat-2015-sebesar-rp48-triliun.html. Download at 20 September 2018.

Stevans, L., & Sessions, D. (2008). The Relationship Between Poverty and Economic Growth Revisited. Journal of Income Distribution, 17(1), 5-20.

Suprayitno, E., Aslam, M., & Harun, A. (2017). Zakat and SDGs: Impact Zakat on Human Development in the Five States of Malaysia. International Journal of Zakat, 2(1), 61-69.

Syahrullah & Ulfah, M. (2016). The response of Indonesian Academicians toward Factors Influencing the Payment of Zakat on Employment Income. Research on Humanities and Social Sciences, .6(10), 87-94.

Yusoff, M. B. (2011). Zakat Expenditure, School Enrollment, and Economic Growth in Malaysia. International Journal of Business and Social Science, 2(6), 175-181.




DOI: http://dx.doi.org/10.33019/ijbe.v3i1.89

Article Metrics

Abstract view : 2844 times
PDF - 1070 times

Refbacks

  • There are currently no refbacks.


Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License

Integrated Journal of Business and Economics is licensed under a Creative Commons Attribution 4.0 International License.