Review on Indonesian Zakah Management and Obstacles

Abstract

This paper presents a conceptual model a management of zakah in Indonesia. A variety of reforms and new ideas in the management and institutions are responsible for collecting and distributing of zakah. Zakah is a specific property with certain conditions prescribed for certain people and given to people or certain people (recipients) as well. The main aim of zakah has two dimensions i.e., spirituality (individually) and social economy to empowerment and enhance the status of the ummah (community). Indonesia as a country with huge Muslim population has great potential in the collection and distribution of zakah. If zakah is managed properly, it will certainly have positive effect on the well-being of poor Indonesians. In 1999 the government of Indonesia issued the Law on the management of zakah, from the moment zakah management in Indonesia entering a new era. Zakah management becomes more professional and systematic. There are two of zakah collections and distribution, i.e. governmental approach and nongovernmental approach. Government established approach consists Badan Amil Zakah (BAZ) and Baitul Mal, meanwhile nongovernmental approach consists Lembaga Amil Zakah (LAZ) (such as Dhuafa Wallet and Zakah Home), Mosques, Islamic Boarding School (pesantren) and Individually. Lack of coordination between all institutions of zakah management has resulted in the achievement of zakah collection and distribution does not optimum. The existence of the trust to the board of the crisis the government formed between the inhibited zakah management of Indonesia. Besides the sociological aspects of weakness, juridical aspect is also one reason why potential zakah Indonesia has not fully handled.