ANALYSIS OF THE INFLUENCE OF ZAKAT IN ENCOURAGING SHARIA ECONOMIC PROGRESS

This study aims to empirically analyze whether zakat has an effect in encouraging the progress of the Islamic economy. Because the main problem faced by the Indonesian nation is the problem of poverty. From some analysis results show that zakat can be useful to improve the economy of a country. The results of the study reveal that the provision of productive zakat capital in the form of business capital has a positive impact and can reduce the level of poverty. zakat is applied properly it will cause equity, equality, and togetherness in terms of the economy. Especially if the person who receives zakat is called mustahik, using it to increase productivity. The provision of productive zakat in the form of business capital can be developed through micro, small and medium enterprises (SMEs) or joint business groups (KUBE) so that there is collaboration and synergy between individuals. The purpose of the research is to test and prove the effect of zakat collected on poverty, welfare, income and growth of the shariah economy in Indonesia.