Abstract

Currently in Indonesia, zakat should and could only be managed by government and private organizations; as per the Constitutional state in the Act No 23/2011. In contrary to this, in fact, society could also manage zakat by themselves as has been clearly exemplified in one of the villages located in Dieng Plateu, Wonosobo, Central Java, Indonesia. It is Kalilembu sub village, where the majority of the people are potato farmers. Zakat payment in the village has been practiced for more than 30 years. This paper would like to explore the factors which drive farmers in Kalilembu to pay zakat. As well as analyzing the practice of zakat in villages. It uses qualitative approach based on distribute questionnaire and interview to the zakat committee and zakat payers in Kalilembu. This paper concludes religious motivation, economic, governance of zakat and zakat payer satisfaction toward zakat distribution are the factors which are driving farmers to pay zakat. Indeed, Kalilembu is an excellent example of the zakat application villages and hopefully, other villages could follow too. Therefore, management zakat from village for village can reduce social economic problems in the society.

Keywords: zakat, driving factors, social economic

JEL Classification: E62, H21,P51