Analysis of Islamic financial institutions on poverty in Indonesia

Poverty is a complex problem and must be addressed immediately. Various efforts have been designed and realized by the government to reduce poverty in Indonesia. One of them is establishing a financial institution that is based on Islamic principles commonly known as an Islamic Financial Institution (LKS). The purpose of this study is to find out the role of Islamic financial institutions in poverty alleviation. This research uses the library research method with the search engine used in the literature search is Google Scholar with the keywords Islamic Financial Institutions, poverty alleviation, and poverty of the Indonesian people. The results of the study show that in the LKS there are instruments that can help solve the problem of poverty, namely through the distribution of zakat, utilizing the insurance sector, the BMT program, and capital development as an effort to alleviate poverty. The conclusions of this study indicate that Islamic Financial Institutions can assist the poor in solving the problem of poverty. in poverty alleviation following the goals of the SDGs. Islamic financial institutions have a role, namely helping underprivileged communities by holding zakat distribution programs, utilizing the insurance sector, increasing people's income and businesses to bring prosperity such as through MSME funding, and being able to reduce poverty. to channel various funding needs so that it can have positive value for economic improvement in society as apoverty alleviation effort in Indonesia.