Abstract

This research aims to examine the relationship between poverty and human development index to happiness rate in Indonesia through Islamic studies approach. This is because poverty Indonesia till become a prominent economic issue but, it has a high rate of happiness compared to another developed country in ASIA at the same time. Besides, to reach such happiness, it also needs a great human development as an indicator to create welfare of such countries. This is a quantitative research with multiple regressions, using macro-economic data since 2014 & 2017 from 33 provinces of Indonesia as a sample. The result revealed that poverty and human development index have a positive significant effect on happiness. Then, this empirical finding is in line with the concept of maqāṣid al-syariah, specifically hifdz al- dīn and hifdz al-‘aql.

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