Title: Efficiency level of zakat funds for the social sector and poverty alleviation in Indonesia

Authors: Sri Herianingrum; Fatimatuzzahro Fatimatuzzahro; Tika Widiastuti; R. Moh. Qudsi Fauzi; Syed Alamdar Ali Shah

Addresses: Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, 60286, Indonesia ' Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, 60286, Indonesia ' Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, 60286, Indonesia ' Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, 60286, Indonesia ' Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Surabaya, 60286, Indonesia

Abstract: This study aims to measure the efficiency of BAZNAS, LAZNAS and APBN funds. It uses input variables of total assets and operational costs and the output variables of funds received and disbursed using the data from 2002 to 2017 on data envelopment analysis (DEA) method. The average technical efficiency score of revenue and funds distributed by BAZNAS, LAZNAS is 80.30%. This means that there is a 19.7% chance that it can be optimised to achieve a perfect technical efficiency score. Meanwhile, the APBN received an efficiency score of 94.3%. Historically, the technical efficiency scores of BAZNAS and LAZNAS funds have fluctuated with a positive trend. Based on the results of multiple linear regressions, the effect of the efficiencies of BAZNAS, LAZNAS and APBN funds shows that their funds have a significantly negative effect on the poverty level.

Keywords: National Amil Zakat Agency; BAZNAS; LAZNAS; APBN fund; data envelopment analysis; DEA; technical efficiency score; economy; Indonesia.

DOI: 10.1504/GBER.2024.135284

Global Business and Economics Review, 2024 Vol.30 No.1, pp.1 - 11

Received: 14 Apr 2022
Accepted: 15 Aug 2022
Published online: 04 Dec 2023 *

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