摘要:This paper analyzes the short and long-run asymmetrical relationship between Islamic financing andpoverty. We apply Autoregressive Distributed Lag on Indonesia data during 2003 to 2017 and provideinteresting result: first, Islamic financing significantly helps to reduce the poverty both in the short runand also in the long run. Second, the role of GDP per capita on poverty reduction is inconclusive.Third, the structural break in 2006 significantly affects the short run dynamics of poverty, while theimpact of structural break in 2010 is mixed. Fourth, there is evident that Islamic financing respond tothe poverty condition in Indonesia.