West Sumatra Province has a high Muslim population and also has a high amount of zakat funds even though it is not yet potential. Regulation of zakat which is different from other provinces in West Sumatra is the existence of compulsory zakat regulations which are directly deducted from salaries for the State Civil Apparatus (ASN). This has a positive impact on the collection of zakat funds in West Sumatra. This should be accompanied by the application of good zakat to reduce poverty. This study used questionnaire to obtain primary data in the province of West Sumatera. This study had 200 respondents, uses poverty indicators and the average time taken to exit poverty as an analysis tool. The results of this study indicate that zakat can be an instrument to reduce poverty, by empowering zakat effectively and increasing economic growth. This research also proves more concisely when the poor can exit of poverty if compared with the absence of zakat application. As for the implications given in this study, the government is expected to be able to support the existence of zakat as an instrument to reduce poverty and achieve the fulfillment of the potential of zakat which is maximized in the collection.

We study repo haircut determinants and develop the haircut calculation model. Collateral securities are government and corporate fixed-incomes, and we examine the determinants in Indonesia, Malaysia, Thailand, and Hong Kong. Implementing the Generalized AutoRegressive-Conditional Heteroskedasticity (GARCH) process, we find that the changes in long-memory returns, liquidities, and currency influence haircuts. Then, we introduce the haircut model using the historical and parametric Value-at-Risk (VaR), burdening the borrower as much as the α-percentile collateral loss. When borrowers default, lenders get the collaterals and haircuts to compensate for the collateral-price change.

Poverty is still a problem faced by all developing countries such as Indonesia. Indonesia's population is predominantly Muslim. One way to reduce poverty is by empowering the zakat system. zakat is an annual financial obligation of Muslim wealth which has reached a wealth surplus (Nishab). Regulations that apply in Indonesia, zakat as a deduction from taxable income has a potential value of zakat 1.57 percent of GDP. West Sumatera is one of the province of Indonesia that has obliged zakat for the State Civil Apparatus. West Sumatera has a zakat potential of IDR 1.7 trillion. This study aims to see how zakat can be an instrument of poverty reduction and a bridge between the poor and the rich. Not only in terms of wealth, but also in terms of spiritual. This study uses the BAZNAS Welfare Index method. The analysis found that the value of the BAZNAS Welfare Index was in the good category.