Islamic Studies Perspectives on Poverty alleviation: Evaluating Pareto Optimality Versus Islamic Economics in Indonesian Government Policy

The amount of social assistance from the government should be able to reduce the number of people suffering which is still quite high in Indonesia, because the social assistance program as a field of income for the poor is called sharing money. Social assistance programs are considered to distribute money which has created difficulties in the government's efforts to reduce poverty. The purpose of this paper, apart from looking at the impact of the benefits of social assistance programs, is also to analyze the role of stakeholders in alleviating poverty from an Islamic economic perspective. The data of this paper are primary data collected from interviews on the role of stakeholders and secondary data from BPS searches. The findings of this paper show that the Islamic economic solution is that the aid program process sees the needs and problems that cause them to be poor as well as the role of independent-oriented stakeholders so that it has become a force for changing the cultural mindset of the poor towards government assistance programs. Government assistance programs have the consequence of turning the poor into self-reliant and ignoring Pareto optimality, instead forcing participation in entrepreneurial activities. Conclusions/suggestions for Islamic economic solutions in government aid programs that are fardu kifayah oriented to needs, so that they are not Pareto optimality oriented and the problem of poverty and the role of stakeholders will give birth to self-reliance which has become an important factor in the interpretation of a reality of life for the poor. Therefore advanced researchers need to expand research cases and add data sources to increase understanding of the impact of government social assistance programs on poverty reduction in depth and comprehensively