Increasing urban community empowerment through changing of poverty rate index on the productive zakat impact

Abstract

We show how changes in poverty measures can be applied into growth of islamic philanthropy distribution via zakat, and we use the methodology to zakat community development (ZCD) program in Bantul during the 2016. The purpose of the present paper is to prove zakat is able to be a solution part for the community empowerment. The result is the number of productive zakat program beneficiaries whose income is below the poverty line (poor category) before the program are 244 people (H = 0.171) and after the program change to 168 (H = 0.118), which means the program has succeeded in reducing the number of poor people by 76 people (5.34 percent). The poverty gap (P1) of beneficiaries of productive zakat program in Bantul also decrease. The gap between poverty line and average income of beneficiaries is Rp 63,763 before the program, while the gap after the program is Rp 56,992. The income gap (I) is also decline from 0.197 to 0.169. Poverty severity of beneficiaries of productive zakat program in Bantul seen by Sen Index (P2) decrease from 0.093 to 0.062, while using Foster-Greer-Thorbecke Index (P3), the poverty severity decrease from 0.010 to 0.004. The analysis revealed the zakat community empowerment was significant economically in suppressing the poverty rate, and possible for reducing inequality and ending poverty in Indonesia.