Zakat Fund As The Starting Point Of Entrepreneurship In Order to Alleviate Poverty (SDGs Issue)

Abstract

As known, Indonesia is a nation with the largerst Moslem society in the world. According to data issued by Bappenas, in 2020 the population of Indonesia is predicted about 271,066,400 people (Bappenas: 2018). 85 percent of this population (ca. 230.406.440 people) are Moslems. It shows the huge potential in the acceptance of zakat fund, as an obligation for a Moslem who has qualified in accordance with the provisions of Islam. Since MDGs declared in 2000 (UNRC: 2008) which contains a commitment to accelerate human development and poverty alleviation (8 goals), Indonesia has a strong commitment to achieve the MDGs targets became one of Indonesia’s main priorities. As a continuation of the MDGs program, in 2015, more than 190 world leaders committed to 17 Sustainable Development Goals (SDGs). In Indonesia, 17 SDGs are grouped into 4 part, one of them is poverty alleviation (UNDP Indonesia: 2018). One of the goals for poverty alleviation is explained with the goal number 8, that is decent work and economic growth. And one of the drivers the existence of decent work and economic growth is the growth of entrepreneurship activities.The growth of entrepreneurship can be implemented with the support of funds. One of them come from the distribution of zakat fund acceptance. By terminology, zakat means a certain amount of property that is required by Allah SWT to be given to the mustahik mentioned in the Qur’an. Or it could also mean a certain amount of certain property given to a particular person (Solihin: 2010). There is a fund transfer from muzaki (zakat payer) to mustahik (zakat recipient).With the transfer of funds, there is an expectation that there will be a better life change for mustahik, so that in time they will be becomes muzaki.This activity is expected to occur continously, forming a circle of increasing goodness. And ultimately will improve society wellbeing. To support this paper, the author use a qualitative methods with secondary datas and supported by Tawhidi String Relation (TSR) theory which includes the method of circular causation and IIE (interaction, integration and evolution) method. Keywords : zakat, entrepreneurship, poverty alleviation, SDGs, TSR

Zakat and SDG 6: a Case Study of Baznas, Indonesia

“…They found that in the short term zakat can achieve the SDG of inequality reduction and promote the economic growth of each state. In addition, the potential of zakat funds to finance SDGrelated projects was addressed by Asmalia et al (2018) and Harahap (2018). Their research respectively studied the possibility of zakat funding of SDGs and entrepreneurship.…”

The Role of Islamic Financial Institutions in Distributing Zakat Refund (Wakalah)

“…In economics, zakat aims to influence several parameters, including aggregate consumption, savings and investment, aggregate labour and capital supply, poverty elimination, and economic growth. Paying zakat demonstrates concern for the least fortunate people of society (Harahap, 2018). Offering contributions to the poor and needy will contribute to economic growth by channelling capital to members of society with a far greater marginal propensity to consume.…”

Issue and Challenges on Zakat Refund Distribution

“…Zakat is one of Islam's five pillars. Zakat refers explicitly to growth and expansion (Harahap, 2018). Based on surah al-Baqarah verse 43, paying zakat, the third pillar of Islam, is mandatory for every Muslim who has satisfied the qualifications to cleanse their possessions by distributing the zakat to the beneficiaries.…”