Zakah Management for Poverty Alleviation in Indonesia and Brunei Darussalam

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Zakah Management for Poverty Alleviation in Indonesia and Brunei Darussalam

Published Article
Turkish Economic Review
KSP Journals
Publication Date
September 2016
DOI: 10.1453/ter.v3i3.843
  • Open University


Concern for poverty is not new and has been the focus for centuries by historians, sociologists, and economists. The cause has been identified, ranging from shortcomings in the administration of income support, until the injustice of the social and economic system. Various attempts have been proposed, from the reform of social security system for changes in the form of the socioeconomic system. Because poverty is a multidimensional problem, solutions to poverty require a set of coordinated action, particularly through charity. Indonesia, which has a population with a large population, of course, the problem of poverty continues to be a problem in economic development. Nevertheless, the potential zakat Indonesia larger community and cooperation among stakeholders and government regulation is a solution to reduce the level of poverty in Indonesia. It is certainly different from the Brunei Darussalam to the level of a small population and large government revenues, management of zakat by MUIB in the form of cash grants, the capital of commerce, and others are implementable can solve the problem of poverty in this country. Background The rapid development of the system of taxation on income and welfare complex in the 20th century may presume that the system of progressive redistribution of wealth that is unique and modern. In fact, the religious system has the same mechanism to cope with economic injustice and poverty for centuries. Judaism and Christianity adopted the concept of tenths (al-'usyr) as a marginal tax of ten percent of revenues, and both lines of religious traditions developed to drive increased revenue to the poor. For some communities, the concept of tenths and generosity to a charitable organization for the poor remains a religious obligation. The concept of charitable giving motivation proved significant in the concept of religion in the funding of the social needs of the poor in the United States. A tradition that is similar to the practice of tenths of a form of religious obligation as well developed in the practice and jurisprudence of Islam, zakat.

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