Analysis of Efficiency for Zakat Management Organization in Indonesia: A Comparison Study of Super Efficiency and Free Disposal Hull

Abstract

This research aims to analyze the efficiency level of fourteen Zakat Management Organizations (ZMO) in Indonesia. This study uses a quantitative approach with the method of Free Disposal Hull (FDH) and the Super Efficiency (SE) method. Socialization Expense, Operational Expense, and Salary Expense are the input variables, while zakah fund collection and zakah distribution become the output variables. Empirical findings show that ZMO Corp 4 has the highest efficiency level, which analyzed through both methods of FDH or SE. ZMO managed by the government is the most efficient ZMO compared to the others who managed by private group and social organization. Total Potential Importance (TPI) shows that the output variable that requires the most significant adjustment is the zakat distribution, which is 12.66%

Motivation to Paying Zakat: The Role of Religiosity, Zakat Literacy, and Government Regulations

“…In some countries, citizens who are deemed capable according to Islam are obligated to pay zakat. Some of these countries determine the mechanism of payment, either through zakat management organizations, under the control and supervision of the government, while others provide freedom of payment (Hayati & Putri, 2020;Muthohar, 2019;Ryandono et al, 2021).…”

Productivity of Waqf Funds in Indonesia

“…Wahab & Rahman (2012) explain Malaysia's productivity growth of zakat institutions. Ryandono et al (2021), who analyzed the efficiency of zakat institutions in Indonesia with research periods starting from 2014-2018 using the DEA and FDH methods. And research from Saadati (2016) looks at how well cash waqf helps Indonesians get ahead economically.…”

Zekatın Kamu Maliyesi Enstrümanı Olarak Değerlendirilmesi

“…One strand explores the centralization of zakat from a political economy perspective by looking into the motivation of the state with the integration of the zakat such as Alias (2017) and Niswah (2021). The second research strand examines the efficiency of the centralization of the zakat (Ryandono et al, 2022;Wahab & Rahim Abdul Rahman, 2011) and ways and means to increase efficiency (Salleh, 2014;Utami et al, 2021), particularly regarding the institutional organizational structure in the East Asian countries where zakat institutions are common (Fahlefi, 2022). The third strand is related to how zakat funds have been utilized as a financial instrument for microfinancing (Nabi et al, 2021;H.…”