THE ROLE OF ISLAMIC SOCIAL FUNDS IN REDUCING POVERTY AND CRIME RATES IN INDONESIA
Keywords:
Zakat, Poverty, Criminal Cases, Economics of CrimeAbstract
Several studies indicate that poverty is closely related to crime rates. In Islam, poverty alleviation can be achieved through the utilization of zakat, infaq, sedekah, and other religious social funds (ZIS-DSKL). This study aims to analyze the role of religious social funds (ZIS-DSKL) in reducing poverty, which in turn will help decrease crime rates in Indonesia. Using panel data from 34 provinces for the period 2018-2023, this study develops two static panel regression models with a random effects approach. The first model examines the impact of ZIS-DSKL on the percentage of the poor population (p0), while the second model assesses the impact of ZIS-DSKL on the number of criminal cases. Results from the first model show that ZIS-DSKL, life expectancy, and the open unemployment rate significantly influence poverty. The second model reveals that ZIS-DSKL, per capita income, population size, the percentage of the poor population, and gross enrollment rate in higher education significantly affect the number of criminal cases. These findings suggest that the allocation and effectiveness of ZIS-DSKL can contribute to reducing poverty and crime. Recommendations are provided to improve the management of religious social funds to maximize their impact on social policy.
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