Abstract
This study investigated the impact of ZIS (Zakat, Infaq, and Sadaqah) Gross Regional Domestic Products, Regional Minimum Wages, and Inflation on Poverty Levels in Indonesia during the 2012-2016 period. .This paper used secondary data in the panel data form. This research conducted a quantitative approach using panel data regression. Based on the results of the panel data testing, the best model chosen is the Random Effect Model (REM). Variables of gross regional domestic products and regional minimum wages have a significant effect on poverty levels in Indonesia while the variables of zakat, infaq, and shadaqah (ZIS) and inflation do not influence the level of poverty in Indonesia.
Highlights
Poverty for Indonesia several other developing countries is still a significant problem
The highest constant value is Papua Province at 29.36653, which means that it is related to the influence of zakat, infaq, and shadaqah (ZIS), gross regional domestic product, regional minimum wages and inflation on poverty levels, so the poverty level in Papua Province tends to be higher than other regions
While the lowest constant value is North Kalimantan Province which is 2.551436 which means it is related to the influence of zakat, infaq, and shadaqah (ZIS), gross regional domestic product, regional minimum wages and inflation on poverty levels, the poverty level in North Kalimantan Province tends to be lower compared to other regions
Summary
Poverty for Indonesia several other developing countries is still a significant problem. Poverty reduction is the main objective of development policy throughout the world This is the main objective of Islamic economics and institutions, especially zakat institutions. Poverty alleviation and reducing income inequality deserve priority in national economic development strategies. The only way to solve problems is to use instruments based on local culture or religion In this case, the zakat institution is considered as one of the most effective traditional mechanisms for dealing with the problem of poverty (Ayuniyyah, Pramanik and Ariffin, 2018). This study tried to give an illustration of the influence of ZIS Distribution ZIS (Zakat Infaq, and Sadaqah), Gross Domestic Product, Minimum Wage, and inflation on Indonesia poverty level. This research can be used to add research field experience and discussion of the policymaker to overcome the problem of poverty
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