ISSUES OF POVERTY AND ECONOMIC INEQUALITY IN INDONESIA: THE CONCEPT OF DISTRIBUTION WEALTH IN ISLAM

Abstract

This article review discusses the problem of low welfare in Indonesia, involving the issue of high poverty, low literacy levels, and high unemployment rates. The data shows a widening gap between high- and low-income groups. Although the Muslim population in Indonesia reaches 86.7% of the total population, many still live in poverty. Handling income disparity is a complex challenge that has not been fully overcome by government policies. Poverty in Indonesia is related to uneven distribution of wealth, lack of awareness in paying zakat, uneven distribution of zakat, and accumulation of wealth by a number of groups of rich people. The government is expected to play a key role in efforts to equalize the distribution of wealth in order to achieve prosperity in accordance with Islamic economic principles. Islam provides instruments such as zakat, alms, and waqf as a solution to the problem of poverty and inequality. However, its implementation is hampered by problems of management, corruption, poor bureaucracy, and the lack of capacity of Muslim resources in integrating Islamic teachings in state policy. Resistance to the use of Islamic law as a policy basis is also an obstacle that needs to be overcome. The purpose of this article is to explore the potential of Islamic teachings in overcoming the challenges of poverty and disparity.