Impact of Zakat, Waqf, and Islamic Microfinance on Poverty Alleviation in Indonesia

This study investigates the impact of Islamic Microfinance, Waqf, and Zakat on poverty alleviation in Indonesia using quantitative analysis. A sample of 190 participants was surveyed using a Likert scale (1-5), and the data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) to examine the relationships between these variables. The results indicate that all three factors—Islamic Microfinance, Waqf, and Zakat—have a significant positive impact on poverty alleviation. Zakat was found to have the most substantial effect, followed by Waqf and Islamic Microfinance. The findings emphasize the importance of integrating Islamic financial tools in policy frameworks aimed at reducing poverty and promoting social welfare in Indonesia. The study provides valuable insights for policymakers and Islamic financial institutions to enhance their strategies in poverty alleviation programs.