Eradicating Poverty through Zakat Utilization (A Case from Kelompok Bina Zakat Program)

Economic inequality is something that is still visible in a developing country. The wide gap between the rich and the poor is a key factor in causing poverty. The National Amil Zakat Agency (BAZNAS) is one of the institutions that aim to collect and distribute zakat funds. In its distribution, BAZNAS formed Kelompok Bina Zakat (KBZ) spread across various regions. The establishment of the KBZ is expected to be a solution to the problem of poverty in Indonesia. This study aims: what is the background of banuayu village and KBZ Program? Can the formation of KBZ be a solution to poverty alleviation? And how the BAZNAS stimulant fund mechanism can develop? This research is a field research with a qualitative descriptive approach. The data collection techniques used are observation, interviews, and documentation. The results show that there is a significant influence on the formation of the KBZ in poverty alleviation with the assistance of venture capital from the BAZNAS stimulant fund, so that the economy of the community in Banuayu OKUT Village, South Sumatra can live. Then the mechanism is to charge a loan principal return of Rp. 100,000 as a profit sharing from borrowed funds of Rp. 1,000,000.