The Role of Zakat in Poverty Alleviation and Farmer Welfare The Theoretical Review
The Role of Zakat in Poverty Alleviation and Farmer Welfare The Theoretical Review
The Role of Zakat in Poverty Alleviation and Farmer Welfare; the Theoretical
Review
Abdul Wahid Mongkito1,*, Samdin2, Gamsir3, La Ode Suriadi4, Muh. Yani Balaka5, Lapipi6, La Ode
Muhammad Harafah7, Irmawatty P. Tamburaka8, Alwahidin9 and Ambo Wonua Nusantara10
1
Doctoral Program in Economics, Haluoleo University, Kendari, Indonesia; 2,8,10Faculty of Economics and Business,
Haluoleo University, Kendari, Indonesia; 9Faculty of Economics and Business, IAIN Kendari, Indonesia
*
Corresponding author’s e-mail: [email protected]
Zakat is a must to implement which has been proven to be an instrument for equal distribution of income to alleviate poverty
and socio-economic disparities in society. This research aims to reveal the latest research regarding the role of zakat in poverty
alleviation and prosperity. Then map previous research findings and gaps regarding the role of zakat in poverty alleviation and
prosperity; and reveal the role of zakat in the welfare of farmers. This research uses a literature study paradigm. They used
secondary data from 71 journals. The scientific journal search technique used the keywords "the role of Zakat in alleviating
poverty and welfare of farmers" in the latest publication period between 2014 and 2024. Discussions regarding the role of zakat
in alleviating poverty and welfare are generally carried out in Indonesia, Nigeria, Afghanistan, Pakistan, Tanzania, Brunei
Darussalam, Bangladesh, and Malaysia. Research intensity (number of journals) in the rice line shows an increase. The results
of previous studies agree that zakat has quite important potential as a key instrument in distributing financial resources to be
used by zakat recipients to get out of the poverty line. The results of the next analysis are research findings that specifically
state that zakat has begun to shift to the agricultural sector. In particular, research regarding zakat for the welfare of farmers
began to be carried out in 2016-2024. The focus of the analysis is distribution scenarios, driving factors for zakat payments,
models for empowering zakat recipients, implementation barriers, and most recently the focus on implementing agricultural
zakat for financial inclusion by strengthening institutions. Several predictors that are widely discussed by researchers and need
to be studied further are the role of zakat on poverty and welfare through labor absorption to overcome unemployment and
income inequality.
Keywords: Zakat, poverty, welfare, economic growth, unemployment, inequality, farmers.
Mongkito, A.W., Samdin, Gamsir, L.O. Suriadi, M.Y. Balaka, Lapipi, L.O.M. Harafah, I.P. Tamburaka, Alwahidin and A.W. Nusantara. 2025. The Role of
Zakat in Poverty Alleviation and Farmer Welfare; The Theoretical Review. Journal of Global Innovations in Agricultural Sciences 13:285-296.
[Received 1 Jul 2024; Accepted 3 Aug 2024; Published 1 Jan 2025]
Attribution 4.0 International (CC BY 4.0)
Mongkito, Samdin, Gamsir, Suriadi, Balaka, Lapipi, Harafah, Tamburaka, Alwahidin & Nusantara
However, there is still a gap in effectiveness in terms of its framework for formulating the problem to be researched. The
role in overcoming poverty and creating prosperity. (Eliana ultimate goal of a literature review is to get an overview of
and Endang, 2023) reported that the level of compliance with what other people have done before.
paying zakat is still very low, and has even tended to decline This research purely uses secondary data originating from
in recent years. The cause is the lack of public understanding journals. Secondary data from journal sources that discuss
regarding zakat obligations, lack of trust in zakat management management practices in agricultural development are 71
institutions, and reluctance to pay due to perceptions of international journals. The steps and processes in literature
corruption and injustice. Then it cannot be explained that study research consist of at least four steps as presented in
zakat consistently reduces unemployment and creates Figure 1.
prosperity (Eliana and Endang, 2023). This indicates that The first stage is to determine or formulate problems
analyzing poverty and welfare is quite complex because there regarding the topic discussed according to the researcher's
are many variables to measure, for example, economic growth scientific interests. The resulting topic is about zakat poverty
Salsabila and Azhar (2023); Fuis and Filianti (2022); and welfare.
Mohapatra and Giri (2022); Suryahadi et al. (2020). Then The second stage is a literature search, the literature in
there is the unemployment rate (Taufiqurrahman, 2022; question is scientific publications or journals. The scientific
Suryahadi et al., 2020; Prawesti and Hermawan, 2017; Nisha journal search technique is carried out using several
and Iqbal, 2017). Another factor that has been discussed in techniques (a) The journals analyzed are international, so
explaining the role of zakat is income inequality (Akçay, national journals are ignored; (b) Journal search using the
2022; Tadjoeddin et al., 2021; Tjachja et al., 2020; McDoom keyword "the role of Zakat in poverty alleviation and farmer
et al., 2019; Akhmad et al., 2018). welfare". At this stage, we found a new topic that was
Observing the research results of Fatimah et al. (2024); Salim frequently found, namely "zakat" so that the next journal
et al. (2024); Salsabila et al. (2023); Niswah and Assadam search keyword was "farmers' welfare zakat"; (c) Journal
(2023); Swandaru et al. (2022); Setianingsih et al. (2022); search for the latest publications between 2014 and 2024.
Hakim et al. (2022); Wijaya and Ritonga (2021); Tasriani Search for journals in the Google menu with the keywords
(2021); Saripudin et al. (2020); and Sachfurrohman et al. mentioned above, then classify them by setting standard
(2020) found "empty-space" to update the scope of analysis journals indexed by international databases and indexed by
to answer, namely how zakat plays an important role in Scopus.
alleviating poverty and/or creating prosperity. For
researchers, there is a need to update knowledge regarding the
"empty-space" in question. The first step can be started by
reconstructing theory based on secondary data from the latest
and relevant research through review studies. As a novelty
and originality, this research also contains the content of the
study of zakat which theoretically can have a positive and
strong influence in explaining poverty and welfare, as well as
its influence on economic growth, unemployment, and
income inequality.
The aims of this research are: 1) to reveal the latest research
regarding the role of zakat in poverty alleviation and
prosperity; 2) to map previous research findings and research
gaps regarding the role of zakat in poverty alleviation and
prosperity; and 3) reveal the role of zakat on the welfare of
farmers.
RESULT
Asman and Ahmed (2023). Sixth, regarding zakat on forest (2021); Zainuddin and Khalid (2020); Saripudin et al. (2020);
farmers as reported by Ali et al. (2021). Seventh, regarding Hasan (2020); Mustika et al. (2019); Ayuniyyah et al. (2018);
zakat and sustainable development (SDGs) as reported by Aminu (2018); Shaikh (2015) is that productive zakat plays
Hasan (2020); Atah et al. (2018). The remainder is in the form an important role in strengthening and growing the economy,
of a literature study conducted by Mutmainah (2023); Kakar businesses (MSMEs) and strengthening community financial
et al. (2023); Nuraini (2021); Roslan and Akbar (2020); institutions such as Agronatif. In the case of Indonesia, the
Mohamed and Fauziyyah (2020). financial institutions that are mostly analyzed are community
Judging from the distribution of time for researching the financial institutions such as cooperatives.
topics of zakat, poverty, and welfare, more will be carried out The third finding is that the use and distribution of zakat will
in 2023 as many as 19. There is an increase compared to 2015 be good for welfare through strengthening micro businesses
from 3 journals slowly to 9 journals in 2021 and 2022. if the distribution is based on information technology. This is
Complete information on the distribution of research time is then followed by the application of management principles
presented in Figure 4 below. such as planning, organizing, staffing, coordinating,
implementing and controlling (POSCAC) (Simbolon and
Afdawaiza, 2023; Herianingrum et al., 2023; Zaenurrosyid et
Number of Journals 19 al., 2023; Mustaqim and Atabik, 2022; Wijaya and Ritonga,
2021; Fahlefi et al., 2019).
The fourth finding is that compliance with zakat payments is
determined by individual characteristic factors (attitudes
norms and gender). Likewise, demographic characteristics
such as education and knowledge contribute significantly to
9 9
8 compliance with zakat payments (Setianingsih et al., 2022).
7
6
5
3 3
1 1
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
These five recommendations are the entry point or are course, what has a greater impact is that the implementation
explicitly stated as state-of-the-art to start future research. of sharia economics will become more massive. Third, the
You can formulate it all at once or you can choose between ease of capital required by farmers will have an impact on the
the five points according to factual conditions and empirical development of agricultural businesses. In this way, it is
phenomena. In simple terms, the results of the analysis are hoped that the agricultural sector, which is starting to weaken
presented in a conceptual model as seen in Figure 7. its role on the national stage, will remain visible and pay
The Role of Zakat in Farmer Welfare: Previous studies that attention to the government.
specifically discussed the role of zakat on the welfare of The 2018 study of zakat in the agricultural sector (farmers'
farmers were carried out from 2016 to 2024, divided into welfare) discusses the factors driving farmers to pay zakat and
seven phases and topics as presented in Figure 6. The first the sharia model. As reported by Farikha (2018), the factors
phase was the 2016 research period discussing the role of driving farmers to pay zakat are religious, economic
religious figures (ulama) in encouraging the Government to motivation, zakat governance, and satisfaction of zakat
jointly coordinate agricultural zakat (Hamang et al., 2016); payers. Zakat payments made by farmers in this village have
and zakat distribution scenarios (Puspitasari et al., 2016). become a role model for Sharia-based rural development with
Puspitasari et al. (2016) continued that there are three things the community as the main driver.
to pay attention to when distributing zakat to alleviate farmer Discussion in 2020 on empowerment. Sachfurrohman et al.
poverty. First, for zakat institutions, the absorption of zakat (2020) discuss the role of zakat institutions in empowering the
funds that have been collected is to maximize distribution so community, and Saripudin et al. (2020) examine the
that no zakat funds sit in the zakat institution's account for a empowerment model. Sachfurrohman et al. (2020) found that
long period. Second, Sharia insurance, whose role and the Zakat Community Development (ZCD) model did not
function are still unknown, especially by the lower levels of affect community empowerment due to a lack of supervision,
society, will increasingly exist and be known in all circles. Of control, and evaluation from Zakat distribution institutions.
This is contrary to expectations which state that providing Regarding predictor factors, as done by Setianingsih et al.
capital can improve people's welfare and turn mustahik into (2022) stated that the predictor factors in explaining
muzakki (people who are obliged to pay zakat). The problems compliance with paying agricultural zakat are individual
raised by Sachfurrohman et al. (2020) were then answered by factors (attitudes and norms), demographic factors, zakat
Saripudin et al. (2020) in their research stating that in the knowledge, and religiosity. Attitude factors do not influence
context of economic empowerment of rural farmers, an compliance in paying agricultural zakat, and subjective norms
empowerment institutional model is needed by maximizing and perceived behavioral control have a positive influence on
the potential of zakat, infaq and alms as the main capital. This zakat compliance. Demographic factors represented by
institution integrates empowerment models that have been Islamic educational background have a positive influence on
implemented by both the government and the private sector, zakat compliance, while gender has a negative influence on
namely; providing capital assistance and increasing capacity, zakat payments. Zakat knowledge and religiosity factors have
providing agricultural production facilities at relatively cheap a positive influence on zakat compliance.
prices, providing nine basic commodities, and purchasing Entering 2023, the next discussion regarding zakat will be
farmers' harvests. The institution's operational activities use regarding the implementation of agricultural zakat as a
sharia principles to minimize usury. The implementation of solution to improving farmers' welfare by Salsabila et al.
this strategy is expected to reduce the distribution of goods (2023). The research is motivated by the fact that Muslim
and harvests so that it can increase farmers' income and in the farmers' awareness of agricultural zakat payments is still low
long term increase farmers' capital accumulation. In the end, due to a lack of knowledge about productive payment
farmers who were previously mustahik can be transformed systems. Therefore, Salsabila et al. (2023) concluded that
into muzakki (Saripudin et al., 2020). farmers' awareness of agricultural zakat can be significantly
The research focus in 2021 revealed obstacles to the increased through a holistic approach involving education,
implementation of agricultural zakat (Tasriani, 2021) and partnerships, and transparency to ensure the implementation
efforts to increase zakat (Wijaya and Ritonga, 2021). of effective and sustainable zakat programs. Productive
According to Tasriani (2021), the obstacle to implementing agricultural zakat can provide smart solutions to improve
agricultural zakat is due to the lack of public literacy about community welfare, especially when mustahik (zakat
agricultural zakat, apart from that there has been no recipients) can manage zakat effectively. Through this
socialization regarding agricultural zakat from community approach, not only does the agricultural sector thrive, but
leaders and the government. Wijaya and Ritonga (2021) other aspects of mustahik life also receive support, resulting
continued in their research that increasing welfare through in a more comprehensive positive impact.
zakat can be done through: 1) Program planning, namely by The latest research on agricultural zakat is directed at the role
budgeting activity plans for recipients; 2) Implementation of of productive zakat in strengthening local institutions to
empowerment, namely giving zakat to mustahiq, providing improve farmers' welfare (Fatimah et al., 2024). Then
mentoring and mentoring as well as strengthening religious agricultural zakat is for poverty alleviation, empowerment,
mentality for mustahiq; and 3) Evaluating empowerment and financial inclusion in urban areas (Salim et al., 2024).
activities, namely conducting a review of the recipients and According to Fatimah et al. (2024) zakat (productive) which
returning them to the new mustahiq. Referring to Wijaya and is managed in the form of "Dompet Dhuafa" plays an
Ritonga's (2021) report, efforts to increase literacy as an important role in strengthening Agronative Cooperatives. The
obstacle to implementation (Tasriani, 2021) should include role of Agronative Cooperatives in improving farmers'
every process and/or implementation stage that includes the welfare is carried out through three things; coaching on
interests of literacy for the community and zakat recipients. aspects of plant cultivation, character development to increase
Analysis of the role of zakat during 2022 examining the role farmer discipline, and off-takers or market liaisons for
of zakat on the welfare of farmers by Hakim et al. (2022), distributing farmers' products so that they feel calm about the
exploring predictor factors for compliance with zakat selling prices offered by the cooperative.
payments by Setianingsih et al. (2022), and zakat as Salim et al. (2024) emphasized that the zakat-based urban
sustainable financial inclusion by Swandaru et al. (2022). The agriculture model has demonstrated a new and effective
results of the analysis by Swandaru et al. (2022) state that with approach to overcoming urban poverty and increasing food
the existence of the zakat program, the number of poor security, as well as integrating the principles of Islamic social
farmers as measured by the headcount index is decreasing finance. The model's impact on poverty alleviation is
based on the standard poverty line and having kifayah. In the enormous, as it not only provides financial assistance but also
same vein, Hakim et al. (2022) in their study concluded that empowers participants with skills and a sustainable source of
the payment of zakat (muzaraah contract) greatly influences income. This approach results in substantial improvements in
the welfare of farmers, characterized by their ability to meet food security, with participants growing their produce,
basic needs, and slowly shows an increase in welfare. resulting in cost savings and better access to nutritious food.
Another important success was fostering a strong sense of management) and income. What's interesting is that there is
community and empowerment among the participants. research on agricultural and forestry zakat, so this is a good
If we look closely at the results of the analysis in many thing to follow up on in the future.
journals, we can conceptually find the essence of the predictor The results of the next analysis are research findings grouped
factors in explaining the relationship between zakat and the into four topics. First, zakat has been distributed appropriately
economy, demographics, poverty, and social welfare. Many to play a key role in alleviating poverty and creating global
people say that the economy is related to economic growth in prosperity among Muslims, as well as food security, financial
GRDP, while demography is related to unemployment and inclusion, and income equality. Second, zakat plays an
income inequality. important role in strengthening and growing the economy,
When explored with relevant research, these things still give and businesses (MSMEs) and strengthening community
rise to discourse, especially researchers who have not financial institutions. Third, using and distributing zakat will
consistently proven a significant positive linear relationship. benefit welfare through strengthening micro businesses if the
For example, if economic growth contributes significantly to distribution is based on information technology. This is then
the welfare of society, it is rejected by Eliana and Endang followed by the application of management principles,
(2023). Then the reduction in unemployment should reflect a namely POSCAC. Fourth is compliance with zakat payments
significant increase in welfare, which is not in line with the is determined by individual characteristic factors (attitudes
research results. Another pattern is that income inequality norms and gender), and demographic characteristics such as
does not correlate with poverty. Likewise, income inequality education and knowledge.
does not correlate with welfare (Eliana and Endang, 2023). In particular, research regarding zakat for the welfare of
Finally, the research produced a conceptual model that needs farmers began to be carried out in 2016-2024. The focus of
to be explored in future research, which is simply shown in the analysis is distribution scenarios, driving factors for zakat
Figure 8. payments, models for empowering zakat recipients,
implementation barriers, and most recently the focus on
implementing agricultural zakat for financial inclusion by
strengthening institutions. Several predictors that are widely
discussed by researchers and need to be studied further are the
role of zakat on poverty and welfare through labor absorption
to overcome unemployment and income inequality.
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