Zakat and Sustainable Development: Effect of Zakat and Macroeconomic Variables on Dependency Ratio and Poverty

This study aims to analyze the effect of Zakat, human development index, and economic growth on the dependency ratio and poverty. Using a panel data structure (21 districts/cities) and time series for 2010-2019 in a multiple linear regression method. The results show that Zakat has a significant negative effect on the dependency ratio and poverty. Then the human development index has a significant negative impact on the dependency ratio and poverty. Furthermore, economic growth does not affect the dependency ratio; but has a significant negative effect on poverty. The Aceh province government is forecast to expand the quality of human resources through education and skills development to provide human development index values that would eliminate dependency and poverty. Likewise, it is necessary to increase economic growth to make every sector of the economy safer and to reduce the level of dependency ratio and poverty in the districts/cities of Aceh Province. It is necessary to optimize the distribution of Zakat so that it is effective and efficient to reduce the dependency ratio and poverty in the long term.