The impacts of islamic human development index to poverty in Indonesia (2017-2022)

Abstract

Islamic Human Development Index (iHDI) used as the most comprehensive, appropriate and adequate indicator to measure the human development through an Islamic perspective based on maqasid sharia. In this study, the iHDI will be used to determine their impact to poverty in which is elaborated into five variables. The indicators used are the total Muslim population in each province and the national zakat index data as Hifdzu Dien variable; expenditure per capita (food) and expenditure per capita (non-food) data as Hifdzu Nafs variable; literacy rate and the average length of school years data as Hifdzu Aql variable; the life expectancy and marriage rate data as Hifdzu Nasl variable; economic growth rate and gini ratio asHifdzu Maal variable, and the unemployment rate as a control variable to povertyin Indonesia during 2017- 2022. The quantitative research methods were used in this study with secondary data from Kementerian Agama Republik Indonesia, PUSKAS BAZNAS, BPS, and SIMREGBappenas. The collected data is data panel from 34 provinces in Indonesia with 204 total samples of observations. Using Eviews 12 program, the analysis tool used is panel data regression. The results showed only two provinces show iHDI values in the Middle standard category; Jawa Barat and DKI Jakarta. In the conclusion, Indonesia is still in a Low standard iHDI when calculated in general with an average for the last 6 years with the value of 40.32. The results of the study showed that there was a positive relationship between Hifdzu Dien and unemployment variable to poverty in Indonesia. The Hifdzu Dien variable (preservation of religion) used two indicators; the number of Muslim populations in each province and the nationalzakat index. For unemployment as a control variable, the data used is the OpenUnemployment Rate (OUR). The positive relationship indicated that if the HifdzuDien and Unemployment variables increase, the poverty rate will also increase. Meanwhile, the other four variables (Hifdzu Nafs, Hifdzu Maal, Hifdzu Nasl, and Hifdzu Maal) had a negative relationship with poverty in Indonesia. This result showed that if the independent variable increases, the poverty rate as the dependent variable will decrease.