THE EFFECT OF ZAKAT INDEX, ISLAMIC HUMAN DEVELOPMENT INDEX (I-HDI), AND UNEMPLOYMENT RATE ON POVERTY IN SOUTHERN SUMATRA ISLAND

Abstract

This study aims to analyze the effect of the Zakat Index, Islamic Human Development Index (I-HDI), and Unemployment Rate on Poverty in the Southern Sumatra region during the period 2019-2023. The method used is quantitative with a panel data approach that includes cross-sectional data from five provinces and a five-year time series. The analysis was carried out using the Fixed Effect Model (FEM) regression model through Eviews 12 software. The results of the study indicate that: (1) The Zakat Index partially has a significant positive effect on Poverty; (2) IHDI and Unemployment Rate partially do not have a significant effect on Poverty; (3) Simultaneously, these three variables affect Poverty. This finding emphasizes the importance of the Zakat program towards economic empowerment. Productive zakat programs, such as business capital assistance and job training, need to be prioritized over consumptive assistance. In addition, optimization of the potential of professional zakat and agricultural zakat also needs to be strengthened through ongoing socialization and literacy, so that zakat can play a more effective role in poverty alleviation in a sustainable manner.

keywords: Zakat; Islamic Human Development Index (I-HDI); Unemployment Rate; Poverty