The improvement model of microenterprises of post-disaster through empowerment of productive zakat

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Abstract

Islamic philanthropy or zakat has a mission to poverty alleviation and improve welfare for zakat recipients (Fitri, 2017), especially for the poor and affected by natural disasters. This study aims to determine the distribution model and use of productive zakat and to determine the effectiveness of productive zakat in improving welfare after natural disasters in Indonesia. This study uses qualitative methods with the theoretical development of field research. Data collection was carried out through interviews and in-depth observations from national zakat management organizations in Indonesia, including The National Board of Zakat of Republic Indonesia (BAZNAS), The Department of Amil Zakat, Infaq and Alms of Nahdlatul Ulama (NU-Care LAZISNU) The Department of Amil Zakat, Infaq and Alms Muhammadiyah (LAZISMU), as well as communities receiving productive zakat programs. The results of this study indicate that the model of productive zakat distribution by zakat institutions in Indonesia uses two approaches, namely through direct business capital assistance and through proposals addressed to victims of natural disasters. They use zakat for starting businesses or developing businesses that are already owned by the recipient of productive zakat funds. In sum, productive zakat helps the economy of people who receive productive zakat recipients but it is still not effective for their welfare. Therefore, to increase the maximum role of zakat institutions in distributing productive zakat, synergies are needed between zakat institutions, partners (universities, volunteers, business consultants, etc.), and Islamic insurance.

Keywords: Islamic Philanthropy, Productive Zakat, Economic Recovery, Welfare, Recovery Disasters, Effectivity Distribution, Islamic Insurance

Authors’ individual contribution: Conceptualization — A.Z.A.; Methodology — N.A.; Resources — N.A. and A.Z.A.; Writing — Original Draft — A.Z.A.; Writing — Review & Editing — A.Z.A.; Visualization — A.Z.A.; Funding Acquisition — N.A. and A.Z.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

Acknowledgements: The researchers would like to thank the Research Institute of the Nahdlatul Ulama Islamic University (Indonesia), which funded this research in 2019.

JEL Classification: I38, I31, O31

Received: 05.07.2021
Accepted: 20.09.2021
Published online: 23.09.2021

How to cite this paper: Arifin, N., & Anwar, A. Z. (2021). The improvement model of microenterprises of post-disaster through empowerment of productive zakat. Journal of Governance & Regulation, 10(4), 156–163. https://doi.org/10.22495/jgrv10i4art14