The Role of Zakat in Economic Recovery and Reducing Poverty Rates in Lampung Province

Published date: Jul 15 2025

Journal Title: KnE Social Sciences

Issue title: The International Conference on Da'wah & Communication 2024 (ICDComm 2024)

Pages: 720 - 736

DOI: 10.18502/kss.v10i14.19134

Devid Saputradevidsaputra@radenintan.ac.idUIN Raden Intan Lampung

‎ RodiyahUIN Raden Intan Lampung

‎ MubasitUIN Raden Intan Lampung

This study aims to analyze the role of zakat management institutions in improving the community’s economic welfare through empowering Micro, Small, and Medium Enterprises (MSMEs). It uses qualitative research method, with a case study approach on several zakat programs in Lampung. The study results indicate that zakat functions as a socio-religious instrument and a strategic tool in poverty alleviation and MSME development. Programs such as providing business capital, skills training, business mentoring, and facilitating market access have proven effective in increasing the capacity and income of MSME actors. However, challenges such as limited resources and lack of coordination between institutions still need to be overcome. This study recommends strengthening the capacity of zakat institutions, utilizing digital technology, and cross-sector collaboration to increase the effectiveness of empowerment programs. Thus, zakat can contribute significantly to the region’s inclusive economic development and poverty alleviation.

Keywords: MSMEs, poverty alleviation, zakat institutions

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