THE POTENCY OF PRODUCTIVE ZAKAT IN REDUCING THE RATE OF POVERTY IN ACEH

Abstract

Economic crises and disasters have caused an increase in the incidence of poverty in Indonesia, including Aceh province. Difficulties in obtaining capital loan business have been one cause of difficulty to get out of poverty. Some studies believe that the concept of microfinance could alleviate poverty. However, several other studies still doubt its effectiveness. In Islam, productive zakat is a method that can improve the well-being of the poor. Baitul Mal has distributed productive zakat to tackle poverty in Aceh. The question is, what are the advantages of productive zakat compared with conventional microfinance in addressing the problem of poverty in Aceh? This paper identifies the potential of productive zakat in addressing the problem of poverty in Aceh. The analysis was made by using content analysis method based on secondary data from several previous studies. It has found that productive zakat has the potential and is appropriate in tackling poverty in Aceh because it gives direct support to the poor, provides mental support, and the method itself is in accordance with the teachings of Islam.