The Impact of PP-PKH on the Economic Welfare of Decile 1–2 Households through Maqasid al-Shariah-Based Economic Empowerment: Evidence from Panca Mulya Village, South Sumatera
DOI:
https://doi.org/10.61455/sicopus.v4i03.602Keywords:
economic well-being, economic empowerment, maqasid al-shariah, smartpls 4, low-income householdsAbstract
Objective: This study aims to examine the effect of the Protection and Empowerment Program through the Family Hope Program (PP-PKH) on the economic welfare of households in decile groups 1–2 in Panca Mulya Village, while investigating the mediating role of Maqasid al-Shariah-based economic empowerment in strengthening the relationship between social protection and community welfare. Theoretical framework: The research is based on social protection theory integrated with the Maqasid al-Shariah framework, emphasizing that empowerment grounded in Islamic values promotes sustainable welfare beyond financial assistance alone. Literature review: Previous studies primarily emphasize the direct impact of PKH on welfare, while limited research explores the mediating role of Islamic-based economic empowerment in strengthening program effectiveness. Method: This study employs a quantitative explanatory design, collecting data through questionnaires, observations, and interviews, which are analyzed using PLS-SEM with SmartPLS 3. Results: The findings demonstrate that PP-PKH positively influences both community economic welfare and Maqasid al-Shariah-based economic empowerment. Economic empowerment also has a significant positive effect on welfare and serves as a mediating variable, indicating that the program's effectiveness is strengthened when social assistance is accompanied by empowerment strategies rooted in Islamic economic values. Implications: The results suggest that social protection policies should integrate Islamic-based economic empowerment to enhance the long-term effectiveness and sustainability of poverty alleviation programs. Novelty: This study introduces an integrated model that links the Family Hope Program (PKH) with Maqasid al-Shariah based economic empowerment, demonstrating its mediating role in improving community economic welfare.
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