The Relevance of Muhammad Baqir Al-Sadr’s Thought on Zakat Distribution for Poverty Alleviation in Indonesia
DOI:
https://doi.org/10.18326/ijier.v7i1.5077Keywords:
Zakat, Poverty, Muhammad Baqir al-Sadr, Islamic EconomicsAbstract
Poverty remains a major challenge in Indonesia despite institutionalized zakat management. Muhammad Baqir al-Sadr conceptualizes zakat as a productive redistributive mechanism intended to promote long-term socioeconomic justice. This study assesses the effectiveness of zakat within this framework using the Autoregressive Distributed Lag (ARDL) approach with annual data from 2001–2023 and GDP as a control variable. The results indicate that zakat has a significant short-run effect, reducing poverty with its strongest impact appearing after a lag (coefficient = –0.131), although the effect weakens and reverses over time, reflecting a consumption-based distribution pattern. In contrast, GDP shows both short-run and long-run significance in lowering poverty, with a sustained negative long-term effect (coefficient = –0.855). These findings suggest that current Zakat implementation has not yet embodied al-Sadr’s productive model and requires governance reforms to strengthen its structural role in poverty alleviation.
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