Poverty Management through the Empowerment of Productive Asnaf: Exploring the Effectiveness of Micro-Credit Assistance in Indonesia to Achieve SDG 1

Andrew Ebekozien; Mohamed Ahmed Hafez Ahmed; Nooramira Binta Ghazali; Mohamad Shaharudin Samsurijan; Zahri Hamat; Ahmad Nizam Ahmad Nizam

doi:10.63332/joph.v5i7.2795

Authors

Andrew Ebekozien Development Planning and Management, School of Social Sciences, Universiti Sains Malaysia; Department of Engineering, INTI International University, Nilai, Malaysia; Faculty of Engineering, Built Environment and Information Technology, Walter Sisulu University, East London, South Africa; and Department of Quantity Surveying, Auchi Polytechnic, Auchi, Nigeria
Mohamed Ahmed Hafez Ahmed Department of Engineering, INTI International University, Nilai, Malaysia
Nooramira Binta Ghazali Development Planning and Management, School of Social Sciences, Universiti Sains Malaysia
Mohamad Shaharudin Samsurijan Development Planning and Management, School of Social Sciences, Universiti Sains Malaysia
Zahri Hamat Faculty of Economics and Management, University College Bestari Permaisuri, Setiu, Terengganu
Ahmad Nizam Ahmad Nizam Faculty of Economics and Business, Universitas Syiah Kuala, Banda Acheh, Indonesia

DOI:

https://doi.org/10.63332/joph.v5i7.2795

Keywords:

Baitul Mal Aceh (BMA), Indonesia, Micro Credit Assistance, Poverty Management, Productive Asnaf, Sustainable Development Goal 1

Abstract

The micro-credit programme is a medium for distributing zakat to productive and non-productive asnaf. Studies regarding the effectiveness of micro-credit distributed to productive asnaf in Baitul Mal Aceh (BMA) are scarce, especially in Indonesia. Moreover, there is a paucity of literature on how productive asnaf utilise their micro-credit to grow their businesses and enterprises. Thus, using a case study, this study investigated the effectiveness of micro-credit assistance given to productive Indonesia’s Asnaf to achieve Sustainable Development Goal 1 (SDG 1) and how they grow their businesses and enterprises through a qualitative approach. Data were collected through unstructured interviews involving 12 participants and analysed using the content analysis method of the thematic approach. The findings show that distributed micro-credit assistance has helped productive asnaf accommodate and boost their businesses and enterprises. Indirectly, the BMA has produced a productive group of asnaf who successfully increased their family income and reduced the problem of poverty. This study is one of the few to develop a model for poverty relief programmes in Indonesia. The BMA needs to improve the quality of poverty management programmes, especially for productive asnaf, in the future, via all-inclusive engagement and integrated collaboration.