Discourses of Institutionalization of Zakat Management System in Contemporary Indonesia: Effect of the Revitalization of Islamic Economics

Abstract

In Indonesia, zakat management was trying restructured in a top-down form based on the system followed in Malaysia and, in 1999, a related law was enacted. Although many previous studies have been conducted on zakat for its fundamental spiritual aspects and social roles, macroscopic research on its history of both theory and practice aspects is lacking. The transformation in the administrative reform of zakat, which focuses on not only the discourse of Islamic intellectuals but also the tone of the emerging Islamic economy and attitude of the management organization's practitioners and players, is important to understand the growth of Islam in Indonesia. This paper discusses how the zakat practice, which was an individual practice, expanded to include new objectives such as community development or financial inclusion without losing its original spiritual significance. Further, the paper clarifies how an institutionalized approach to zakat management helps in the development of new theoretical intervention areas and contributes to community development and empowerment, without compromising the original poverty alleviation programs.
 Keywords: Zakat management, Indonesia, Islamic economics

Development of Zakat Management Digitalization in Indonesia

“…But, at the same time, Islamic community awareness in zakat was still very low (Nufus, 2016). Salim (2008) in Adachi (2018) explained that during the Dutch colonial period, religious leaders took a part in zakat collecting and distributing. The collected zakat funds used to support education funds, people's welfare and used as the cost of the war against the Dutch colonial.…”

“…Zakat is one of the five very important pillars of Islam. When viewed from the meaning, zakat means 'to purify', containing the connotations of 'growth' and 'increase' (Adachi, 2018). Besides functioning to purify life and property, zakat can be an Islamic social finance instrument to alleviate poverty.…”

Influence of Local Tax and Zakat Infaq Maslahah Through to Regional Income (Overview of New Trends in Sustainable Development)

“…How does the mechanism of the multiplier effect of this charity? Economically, it is described as follows: it is assumed Zakat assistance given in the form of consumptive (Abraham, 2018, Adachi, 2018and Hassan, 2018. Assistance given to Mustahik consumption will increase the purchasing power of an item mustahik the needs.…”

Optimizing the Use of Zakat, Infaq, and Alms Funds Based on the Empowerment of Pesantren

“…Zakat is a pillar of Islam which has two dimensions [1], namely the world and the hereafter [2]. The dimension of the hereafter is related to obligations to Allah SWT, where the purpose of zakat is to clean one's property and soul [3].…”

“…The average failure rate was because the program was only partial and unsustainable. Some of the factors that led to this failure included the lack of human resources both in terms of quantity and quality [20], lack of coordination between institutions [21], competition between institutions in showing their existence [22], lack of awareness of muzakki, institutional problems [23], problem of legality [2], [24], [25], problem of trust [26]- [28], lack of synergy between institutions and government [29]- [31], etc.…”