THE EFFECTIVENESS OF ZAKAT, INFAQ, AND SHODAQOH IN ALLEVIATING POVERTY IN INDONESIA: USING BASIC NEEDS DEFICIENCY INDEX

This study aims to examine the role of zakat, infaq and shodaqoh in alleviating poverty in Indonesia for the period 2015-2017. The methodology of this study uses a qualitative approach and the BNDI index is formulated to measure the shortcomings and effectiveness of zakat, infaq and shodaqoh in alleviating poverty. The results obtained from BNDI calculations have been able to explain the effectiveness of zakat, infaq and shodaqoh in alleviating poverty in Indonesia. The calculation results that show large value or close to the value of 1 explains that zakat, infaq, shodaqoh distributed by the BAZNAS Center are not effective in reducing poverty in Indonesia. In the results of this study, there are several provinces with the highest BNDI and the lowest BNDI. This study is expected to be used for policymakers to increase the effectiveness of zakat, infaq, and shodaqoh in alleviating poverty.

Keywords: Indonesia, Zakat, Infaq, Shodaqoh, Poverty, Basic Needs Deficiency Index (BNDI).

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