Abstract

This study was conducted in a traditional Islamic boarding school (IBS) located in West Kalimantan. Among the existed boarding schools in the area, Pondok Pesantren Abdussalam was chosen due to its potential. This study adopted qualitative approach, utilized observation, documentation, interview and focus-group discussion (FGD) technique in collecting the data which then being analyzed using action research technique. The originality of the study is as follow: the study in this topic area has not been conducted previously, especially the one which focuses on the integrated economics improvement of IBS in rural area. The study result shows that there have been some economic activities in the institution in spite of its remote location. Additionally, the economic activities have been provided the institution with some benefits. However, the effect of such activities have not been felt fully yet. There have been three reasons in regard with this situation, namely insufficient human resources who have expertise in existed economic sector, limited capital as well as infrastructure factor. We propose the synergetic model to solve these three issues. The model is a cooperative model which can be implemented both with internal institution such as internal sharia micro-finance institution or with external institution such as local government or universities.

Highlights

  • Referring to the meaning of zakat as described in the Qur'an, zakat means to increase, purify, cleanse and bless the treasure (Al Qaradawi, 2011; Doktoralina and Bahari, 2017)

  • Any additional payment for amil can be able from Baitulmal both from other charities Collecting of zakat in Malaysia is increasing from time to time to hundreds of millions of ringgit (Zakat Pulau Pinang, 2015)

  • Based on the analysis of the views of zakat scholars on investment from zakat funds, the experts disagreed over the necessity

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Summary

Introduction

Referring to the meaning of zakat as described in the Qur'an (sura al-Taubah, 103), zakat means to increase, purify, cleanse and bless the treasure (Al Qaradawi, 2011; Doktoralina and Bahari, 2017). The majority of fuqaha argue that zakat quotation funds in each year need not be distributed to asnaf. The division of zakat needs to pay attention to two aspects, namely the rate of asnaf and the amount of zakat collected (Al Qaradawi, 2011). Any additional payment for amil can be able from Baitulmal both from other charities Collecting of zakat in Malaysia is increasing from time to time to hundreds of millions of ringgit (Zakat Pulau Pinang, 2015). Various methods have been planned and arranged by the zakat centre in Malaysia to manage and increase existing zakat funds (Embong et al, 2013). One of them is by doubling the zakat fund is through investment activities (Latif, 1998). The role of accounting Zakat as a support function in Supply chain management is needed (Ahmed et al, 2016; Doktoralina et al, 2018)

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