The Role of Productive Zakat in Reducing the Income Discrepancy in South Kalimantan Province

Abstract

This article aims to analyze the distribution of zakat funds, the impact of zakat funds on income, and the distribution of zakat in reducing income inequality in South Kalimantan Province. The analytical method used is the sample Paired t-test and the Lorenz Curve and Gini Ratio, with a mixed method. The results of the study provide findings, First, the distribution of zakat funds to Mustahik has gone through the stages of indicators including Goal Setting; Planning; Organizing; Staff Filling; Briefing; Supervision; Control; and Coordination. Second, distinguishing income before and after the existence of productive zakat assistance for economic empowerment. Third, the Gini coefficient shows that income inequality can be reduced by a reduction index of 0.1493 after the existence of productive zakat. Thus, it can be concluded that there is a difference in income before and after the distribution of productive zakat for economic empowerment and income inequality can be reduced by a reduction index of 0.1493 after the existence of zakat.

Exploring Economic Potential and Leading Sectors in Building Special Economic Zones (SEZ) in South Kalimantan Province

“…The industrial sector is a sector that is able to absorb a larger workforce and encourage the growth of the country's economy because this sector is a leader of various sectors of progress the economy of a nation [2]. The challenges of globalization and liberalization of the world economy [3] make it a challenge in preparing capital to be able to compete from the fierce competition in the industrial sector so that it is necessary strategic regional steps and have a comparative and competitive advantage to encourage the linkage of the industrial sector and other economic sector activities as a step alignment and shifting of the economic structure of different countries and regions to achieve economic independence [4].…”