Zakat is a system in Islam that is designed to allocate the wealth from the rich to the poor and the needy. The effectivity of zakat in reducing poverty has been proven in the history of Islam. Nevertheless, nowadays, Zakat is still unable to eliminate poverty. Bad planning and organizing of zakat are the main reason for that especially the less information about the potency of zakat in each region. Indonesia is a country that is rich in Natural Resources and has many workforces. So, Indonesia may have hidden potential of agricultural and professional zakat. This study tries to calculate the potency and the impact of the zakat on reducing poverty. The effect will be examined descriptively and statistically and also will be presented by mapping all the provinces in Indonesia. The result shows that there are about 16.1 trillion rupiahs of zakat potential furthermore able to reduce the poverty rate in Indonesia for 0.75 percent. DKI Jakarta is the most affected province by zakat because its poverty rate reaches 0.22 percent. To implement this theory in real practice, the utilization of the mosque to distribute zakat funding where BAZNAS represents as the manager is suggested.

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 socio-economic 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.

Considering the structure of its population, Indonesia has the potential to enjoy advantages that are associated with a demographic dividend in the not too distant future. Nonetheless, there are challenges the country is facing, one of which is the coming into being of the ASEAN Economic Community (AEC). This research describes the state of the labor market in Indonesia to identify how best it can benefit from the demographic dividend, including problems, and how to resolve them. The research uses Multiple Linear Regression with backward elimination method. Re-sults of the research indicated that independent variables in the model showed a negative and significant influence on the economy. To that end, working below 15 hours, and unemployment of the educated are the two most important problems facing in Indonesian labor market. Rec-ommended solutions to the problem is to encourage educated unemployed to participate in Mi-cro and Small Manufactures that deal in processing agricultural commodities to become ready-to-consumer goods.

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The potential of zakat is huge to be ignored by the world. Recently, the notion to integrate zakat on the Sustainable Development Goals has grown rapidly. Nevertheless, the impact of zakat in Indonesia has not been pronounced could doubt the adoption of zakat as a global tool. This paper aims to investigate the impact of zakat on monetary and multidimensional poverty by using the National Zakat Index developed by BAZNAS. Two component of the index that cover the environmental and impact of zakat is employed to sharpen the analysis. The main method used is multiple linear regression with control variables to identify the impact of zakat on multidimensional and monetary poverty. The analysis is also conducted to evaluate the performance and development of zakat in Indonesia. The result informed that the environment for zakat to grow in Indonesia still needs to be improved, particularly in Java. Meanwhile, the micro NZI that represent the performance of institution and impact of zakat on mustahik is the only variable that are significant to multidimensional poverty. Thus, it is recommended for the government to adopt a mandatory system of Zakat in Indonesia because it can give great benefits to Indonesia in alleviating poverty and achieving SDGs in 2030.