Economic estimation and determinations of Zakat potential in Indonesia

Abstract EN

The Government of Indonesia has granted zakat fund as one of financial sources for the country in addition to tax fund.

The collection and distribution of zakat fund should be improved continuously.

For indonesia case, the number of research related to zakat potential is still limited.

This study aims to estimate the potential of zakat in Indonesia and explore the relationship between demographic characteristics and zakat payment.

The primary data were obtained through survey in two cities and two districts comprising 345 households, whereas the secondary data were obtained from many sources.

The empirical analysis are done through descriptive and multivariate analysis.

The results show that total of all zakat potential in Indonesia from various sources is approximately 217 trillion rupiah.

This number is equal to 3.4 % of Indonesia’s 2010 GDP.

The study shows that education, occupation and income are important factors which influence respondent’s frequency and choice of place when paying zakat and alms.