Zakat Institutions In Indonesia Research Articles

The Current Issue of Reporting Zakat in Indonesia: A Critical Analysis

The functions of zakat collection and distribution in Indonesia are carried out by both government and private institutions. Zakat funds hold significant economic development potential. Despite rapid growth in the past decade, the true potential of zakat remains largely untapped. Various factors contribute to suboptimal zakat management in Indonesia, such as ineffective zakat collection organizations, high administrative costs, and ineffective dissemination of information on the importance of zakat payment. This study focuses on the governance of zakat institutions in Indonesia, with a primary emphasis on the National Amil Zakat Agency (BAZNAS) and authorized Private Zakat Institutions (LAZ). This paper is based on a descriptive-analytical method, and it adopts qualitative research for the analysis of the available literature. The research is crucial for building trust, ensuring efficient zakat utilization for poverty alleviation, and enhancing social welfare within the Indonesian context. This research delves into the governance of zakat institutions in Indonesia, primarily focusing on the National Amil Zakat Agency (BAZNAS) (Zakat Institution of the Republic of Indonesia) and authorised Amil Zakat Institutions (LAZ) LAZ (Private Zakat Institutions). Despite official recognition, a lingering lack of trust among some members of the Muslim community necessitates a closer examination of transparency and accountability in zakat collection and distribution. The study aims to assess the reporting practices of zakat institutions, identifying areas for improvement to bolster confidence in the Muslim community. The research holds significance in fostering trust, ensuring effective zakat utilisation for poverty alleviation, and promoting social welfare.

Assessing the Productivity and Technological Changes of Indonesian Zakat Institutions

Measurement of the productivity level of Islamic financial institutions in Indonesia has been widely carried out. However, not much research with the object of research in Islamic social fund institutions, one of which is zakat institutions in Indonesia. This study tries to measure the productivity performance of zakat institutions. This study uses the Malmquist Productivity Index method with DEAP 2.1 software. Data were obtained from eleven zakat institutions with a five-year research period from 2016 to 2020. This study uses the Malmquist Productivity Index method with DEAP 2.1 software. Data were obtained from eleven zakat institutions with a five-year research period from 2016 to 2020. This study is the first study to calculate the productivity level of eleven Indonesian zakat institutions with a research period of the last five years.

Revitalising The Regulation of Zakat Institutions in Indonesia to Achieve Economic Justice

This research aims to provide a solution to the dual function problem of BAZNAS. The problem required the regulatory aspect improvement. Indentifiying national business governance issues, improving the regulation of Law No. 23/2011 on zakat management is crucial. The separation of the two functions of BAZNAS will also reduce the risk of misuse of zakat funds which can be significantly reduced, an independent regulator can conduct monitoring and auditing more effectively. This research uses qualitative method or conceptual review of secondary data through literature study approach. The purpose of the research is to help identify, analyze, and overcome problems and challenges faced in society. The results of the study to achieve economic justice through zakat, the BAZNAS institution needs to separate its function as implementer. To achieve economic justice through zakat, BAZNAS needs to separate its functions as implementer. This separation of functions for BAZNAS will also reduce the risk of misuse of zakat funds which can be reduced significantly. Meanwhile, regulations regarding zakat can be more optimally carried out by the Ministry of Religion independently in monitoring and auditing more effectively, thereby reducing the potential for abuse by implementers.

Efficiency and Stability of Zakat Institutions in Malaysia and Indonesia: DEA Window Analysis

The purpose of this study is to measure the efficiency and stability of zakat institutions in Indonesia and Malaysia. There are 14 zakat institutions that will be analyzed using data envelopment analysis (DEA) window analysis during the period of 2016 to 2020. The result shows that the average efficiency of zakat institution is 78% during the observation period. The inefficiency of zakat institutions from both countries is caused by the less-than-optimal distribution of zakat funds. The best performing zakat institutions are Selangor, BSMU, BRI Foundation, and Baznas because they have the highest efficiency and stability. This study has filled the gap in previous studies that measure the efficiency of zakat institutions with the standard DEA approach. Zakat institution managers can identify potential improvements in input and output variables to achieve maximum level of efficiency.

AN EXAMINATION OF ZAKAT INSTITUTIONS' LEVEL OF PRODUCTIVITY BEFORE AND FOLLOWING THE COVID-19 PANDEMIC

This study aims to analyze the productivity of zakat institutions in Indonesia before and during the COVID-19 pandemic. The potential of zakat in Indonesia is quite large, but in terms of channeling it is still not optimal. The lack of standardization in the management of zakat has resulted in inappropriate collection and distribution of zakat. Whether or not the zakat institution is optimal in carrying out its operational activities can be seen from the productivity of the zakat institution. One of the methods that can be used to analyze performance efficiency is by using the non-parametric Malmquist Productivity Index (MPI) method. The Zakat Institution which is the object of the research shows fluctuations in productivity in each research period. The period during the pandemic has more value than before the pandemic. During the COVID-19 pandemic, LazisMu showed excellent development in terms of productivity.

Assessing Different Ways of Calculating Income Zakat by Zakat Institution in Indonesia

This research aims to analyze the different methods for calculating income zakat in Indonesia, examine the causes and impacts, and find the most applicable method based on the Al-Quran and hadith. This study uses a qualitative approach. The population in this study includes all zakat institutions in Indonesia. This study uses 33 zakat institutions. Research data were collected from the internet (i.e., the websites of zakat institutions in Indonesia). The data analysis compares the methods and procedures for calculating zakat based on income applied by different zakat institutions. Based on the results of the study, Indonesia's 33 zakat institutions only 23 institutions that collect and distribute zakat on income, this is because there are differences in Islamic scholars' opinions on calculating zakat on income provisions. The differences are mainly based on the type of nisab used, basic needs, and debt-free status, but not the zakat rate.

Comparative Analysis of Collection and Distribution of Zakat Institution Funds in Indonesia

Zakat is an important instrument in Islamic philanthropy that can be beneficial in socio-economic terms. The purpose of this study is to analyze the development of the collection and distribution of zakat funds at zakat institutions in Indonesia. This research uses a quantitative method using horizontal analysis. The results of the study show that the collection and distribution of zakat funds for each zakat institution have different graphs are increasing, decreasing, and fluctuating. The collection of zakat funds in the 2016-2019 period shows that the largest collection of funds is LAZ Dompet Dhuafa, the proportion of which reaches 30% of the total funds. Meanwhile, LAZ Mizan Amanah is a zakat institution with the lowest proportion of fundraising, namely 1% of the total funds. The distribution of zakat funds in the period 2016-2019 shows that LAZ Rumah Zakat has the largest distribution of funds and LAZ Mizan Amanah is a zakat institution with the lowest proportion of channeling funds is only 1% of total funds. The implication of this research is for zakat institutions to optimize the collection of zakat funds innovatively so that they can channel more funds to the community.

New Finding on Zakat Efficiency Measurement in Indonesia 2016-2022

This research aims to measure the efficiency of zakat amil institutions in Indonesia using the Data Envelopment Analysis (DEA) method for the 2016-2022 research period. The research objects used were 21 zakat institutions in Indonesia. The data from this research comes from the annual financial reports of each institution for the 2016-2022 period. The input variables in this research are employee costs, operational costs and total assets. And the output variable is the collection and distribution of zakat. The results of this research explain that during the 2016-2022 period, the level of efficiency of zakat institutions in Indonesia has a fluctuating trend from year to year and tends to increase. Based on the average efficiency score, it can be concluded that no zakat institution in Indonesia has reached the maximum level of efficiency. Furthermore, the Covid-19 pandemic has an impact on the efficiency level of Zakat Institutions. Then, the potential improvement analysis shows that the collection and distribution of zakat is the variable that causes the biggest inefficiency in zakat institutions. The results of the benchmarking analysis concluded that BMM and DD zakat institutions were the institutions with the most referrals.

Efficiency and Productivity of Zakat Management Organization Before and During Pandemic Covid-19

This study investigates the efficiency and productivity of zakat institutions in Indonesia before and during the Covid-19 pandemic using Data Envelopment Analysis (DEA) and the Malmquist Productivity Index (MPI). Our findings reveal that three out of the five zakat institutions exhibited efficiency at different periods. Notably, LAZ Al Azhar demonstrated consistent efficiency both before and during the pandemic, while LAZISNU was efficient in 2019-2020 but experienced inefficiency in 2021. Additionally, LAZ Rumah Zakat exhibited an increase in efficiency in 2020 but regressed to inefficiency in 2021, primarily attributed to excessive distribution of ZIS funds in each institution. These findings highlight the urgent need for standardization and optimization of zakat management to unlock its immense potential for equitable distribution and impact during times of crisis, offering valuable insights for policymakers and zakat institutions globally.
 Highlights:
 
 Standardization and Optimization: The absence of standardized zakat management contributes to suboptimal collection and distribution of zakat funds in Indonesia.
 DEA and MPI Analysis: Data Envelopment Analysis (DEA) and the Malmquist Productivity Index (MPI) serve as effective methods to evaluate the operational efficiency and productivity of zakat institutions.
 Implications for Global Zakat Institutions: Understanding the dynamics of zakat efficiency during crises can offer valuable insights for similar institutions worldwide to enhance their distribution impact and resource management.
 
 Keywords: Zakat institutions, Efficiency, Productivity, Indonesia, Covid-19 pandemic.

Efficiency and Productivity of Zakat Management Organization Before and During Pandemic Covid-19

This study investigates the efficiency and productivity of zakat institutions in Indonesia before and during the Covid-19 pandemic using Data Envelopment Analysis (DEA) and the Malmquist Productivity Index (MPI). Our findings reveal that three out of the five zakat institutions exhibited efficiency at different periods. Notably, LAZ Al Azhar demonstrated consistent efficiency both before and during the pandemic, while LAZISNU was efficient in 2019-2020 but experienced inefficiency in 2021. Additionally, LAZ Rumah Zakat exhibited an increase in efficiency in 2020 but regressed to inefficiency in 2021, primarily attributed to excessive distribution of ZIS funds in each institution. These findings highlight the urgent need for standardization and optimization of zakat management to unlock its immense potential for equitable distribution and impact during times of crisis, offering valuable insights for policymakers and zakat institutions globally.
 Highlights:
 
 Standardization and Optimization: The absence of standardized zakat management contributes to suboptimal collection and distribution of zakat funds in Indonesia.
 DEA and MPI Analysis: Data Envelopment Analysis (DEA) and the Malmquist Productivity Index (MPI) serve as effective methods to evaluate the operational efficiency and productivity of zakat institutions.
 Implications for Global Zakat Institutions: Understanding the dynamics of zakat efficiency during crises can offer valuable insights for similar institutions worldwide to enhance their distribution impact and resource management.
 
 Keywords: Zakat institutions, Efficiency, Productivity, Indonesia, Covid-19 pandemic.

EXPLORATIVE ANALYSIS OF YOUTUBE CHANNEL OF ZAKAT INSTITUTION IN INDONESIA: A DOCUMENTATION STUDY OF NU CARE'S YOUTUBE CHANNEL

YouTube is one of the information media that is favored by many people today. Information related to the performance of zakat institutions in Indonesia can be obtained from the YouTube channel of the zakat institution, for example the NU Care YouTube channel. The purpose of the research is to qualitatively analyze the profile and columns on the NU Care YouTube channel. The research method is descriptive qualitative with an explorative approach. The results showed that the NU Care YouTube channel has a profile with 3.61K subscribers and 309 video posts. The NU Care YouTube channel has nine columns like most other YouTube channels. Of the nine columns, only eight columns (home, videos, shorts, live, community, channels, about and search) can be analyzed exploratively. While the playlists column cannot be analyzed exploratively

THE INFLUENCE OF TRANSPARENCY, ACCOUNTABILITY, AND MANAGEMENT QUALITY ON INCREASING MUZAKI’S INTEREST

The implementation of zakat in Indonesian society seems that there is still a gap between hope and reality, the majority of Indonesian Muslims have great zakat potential, but in reality, zakat funds are collected nationally through the National Amil Zakat Agency (BAZNAS) are far from what is expected. The Amil Zakat Nasional Agency (BAZNAS) has future challenges in the management of zakat to improve coordination between the Amil Zakat Agency and zakat institutions in Indonesia. This research aims to find out the Influence of Transparency, Accountability, and Quality of Zakat Management on muzaki interest in the BAZNAS Tasikmalaya Regency. This study uses a quantitative methodology, while the data source in this study is primary data by using questionnaires as a data collection tool. The population in this study is the entire muzaki in BAZNAS Tasikmalaya Regency with a total of 5803 muzaki. The samples in this study used Maximum Likelihood. The sample was taken as many as 140 Muzaki in BAZNAS Tasikmalaya Regency. The sample selection method used is a nonprobability method that is random sampling which is a randomly selected sampling technique from muzaki that has been tapped. Data is processed using SEM analysis with Smart-PLS 3.0 applications. The results of this study are the variables of transparency, accountability and management quality at BAZNAS Tasikmalaya Regency simultaneously affect the increase in interest in muzakki. However, partially accountability has a positive and significant effect on increasing interest in muzakki, and transparency has a positive and significant effect on increasing interest in muzakki, while management quality has a significant negative effect, this is proven to have a significant but negative effect on increasing interest in muzakki. In this study, transparency is a connecting variable between the accountability variable and management quality on the interest of muzaki, so that all variables are said to have a positive and significant influence through the transparency variable

The Effect of Leadership Effectiveness and Islamic Work Motivation on Organization Performance with Islamic Work Ethics as a Moderating Variable


 Organizational performance is a measure of the progress of an organization that shows how well an organization achieves its goals and the results of work achievements that have been achieved by employees in accordance with their functions and work in a certain period. This research was conducted aiming to determine the effect of leadership effectiveness and Islamic work motivation on organizational performance with Islamic work ethics as a moderating variable. This study uses quantitative techniques with primary data collection method questionnaires. The population in this study are all employees of Amil Zakat Institutions in Indonesia. The sampling technique used purposive sampling obtained by 210 respondents. The results showed that the work effectiveness of Islamic leadership and motivation had a significant effect on organizational performance, which means that the first and second hypotheses were accepted, while the Islamic work ethic was not able to moderate the influence of Islamic leadership and work motivation on organizational performance so that the third and fourth hypotheses were rejected.
 Keywords: Leadership Effectiveness, Islamic Work Motivation, Islamic Work Ethics, Organization Performance

Has Covid-19 Pandemic had an Impact on the Productivity of Indonesia Zakat Institutions?

This study aims to measure the productivity of zakat institutions in Indonesia using the Malmquist Productivity Index (MPI) method with the research period 2016-2022. The research objects used are 7 zakat institutions in Indonesia. The data of this study comes from the annual financial statements of each institution from the period 2016-2022. The input variables in this study are employee costs, operational costs and total assets. And for the output variable is the collection and distribution of zakat. The results of this study explain that during the period 2016-2022, the productivity level of zakat institutions in Indonesia has a fluctuating trend from year to year. Based on the average TFPCH score, it is concluded that the productivity of zakat institutions shows a decline and technological change has not contributed optimally to the increase in the productivity of zakat institutions in Indonesia. Furthermore, the productivity of Zakat Institutions during the Covid-19 pandemic has a significant influence on the productivity level of LAZ in Indonesia. Then, there are only two LAZs that have increased productivity, namely BAMUIS BNI and YBM PLN. We also apply quadrant analysis to divide zakat institutions based on efficiency and technological changes value.

Zakat as an instrument of poverty reduction in Indonesia

PurposeThis study aims to analyze the concept of Zakat as an instrument to increase the economy and poverty eradication in Indonesia.Design/methodology/approachThis study used a qualitative method based on library research sourced from books, financial reports and another previous research.FindingsThe results show that the empowerment programs conducted by Zakat institutions in Indonesia are based on the scale of priorities and the potential of Mustahik. Zakat management considers the level of productivity and long-term impacts that improve Mustahik Economy. Thus, the empowerment programs lead to the reduction of Mustahik living below poverty line.Research limitations/implicationsThis study contributes in two ways: first, it analyzes a model to identify the Mustahik’s potential for the Zakat institution in Indonesia. Second, it encourages the awareness of Muzakki and Mustahik regarding the role of Zakat in the Indonesian economy. This is expected to prompt their level of participation in optimizing the potential of Zakat in Indonesia.Originality/valueGiven the scarce literature that provide qualitative and critical reviews of the implementation Zakat empowerment programs to alleviate poverty conducted by the Zakat institutions in Indonesia, this research can act as a bridge for future research in performing empirical studies regarding the impact of a Zakat empowerment program on society.

Efficiency of zakat institutions in Indonesia: data envelopment analysis (DEA) vs free disposal hull (FDH) vs super-efficiency DEA

PurposeZakat is an important Islamic economic instrument that plays significant role in Sustainable Development Goals. Accordingly, Zakat Institutions must manage zakat in a proper and efficient manner. This study aims to examine the efficiency of Zakat Institutions based on their clusters which are government, business and social organizations.Design/methodology/approachThis study uses three quantitative methods: data envelopment analysis (DEA), free disposal hull and super-efficiency DEA. The analytical method is based on production approach, variable return to scale assumption and output orientation. The sample consists of 14 Zakat Institutions from three clusters: Zakat Institutions managed by government, Zakat Institutions managed by corporation and Zakat Institution managed by social organizations.FindingsThe results revealed that all of three techniques culminate the same ranking order of efficiency. Zakat Institution managed by the government is the most efficient Zakat Institution, with the average value of 0.87 by using three approaches combined. Meanwhile, Zakat Institutions owned by company and social institutions cluster are in second and third position, with the average value of 0.65 and 0.4, respectively, based on the results of the three approaches. This study contends that the level of efficiency of Zakat Institutions may be supported by clusters (affiliations) in their management.Research limitations/implicationsThis study’s limitation is the inadequacy of the required data. Nonetheless, this study provides insights to improve the efficiency of Zakat Institutions based on their clusters. Zakat Institutions in each cluster can improve their efficiency by optimizing inputs to produce multiple outputs.Originality/valueThis study enhances research on the efficiency of Zakat Institutions using three methods to assess the consistency and strength of Zakat Institutions’ efficiency values. In addition, this study examines the efficiency level of Zakat Institutions based on their clusters.

Covid-19 and Efficiency in Zakat Institutions: Evidence from Indonesia

This study aims to investigate the efficiency of Zakat institutions in Indonesia. To examine the efficiency of Zakat institutions, we employed the Data Envelopment Analysis method. The objects in this study are 17 Zakat institutions in Indonesia, classified into two: public Zakat institutions and private Zakat institutions. The data in this study comes from the annual reports of 17 Zakat institutions in Indonesia during the 2014-2020 period. The input variables in this study include salaries expense, operational expense, and total assets. The output variables in this study include Zakat collected and Zakat distributed. The results of this study indicate that during 2014-2020, the efficiency of Zakat institutions has a fluctuating trend. In 2014-2016, public Zakat institutions experienced a successive increase in efficiency before experiencing a decline in the 2017-2018 period. Efficiency of public Zakat institutions increased again from 2018 to 2019 but stagnated in the 2019-2020 period. In contrast, efficiency of private Zakat institutions decreased successively during the 2014-2016 period and experienced a slight increase in 2017 before declining again in 2018. However, private Zakat institutions experienced a significant increase in the 2018-2020 period. This study also reveals that private Zakat institutions are generally more efficient in managing inputs and maximizing desired outputs than public Zakat institutions. Moreover, to portray the efficiency level of Zakat institutions during Covid-19, we analyze the efficiency level of Zakat institutions in Indonesia in the 2019-2020 period as a whole. The results of this study found that overall, Zakat institutions in Indonesia experienced a significant trend of increasing efficiency value.

UNDERSTANDING THE COLLETION AND DISTRIBUTION OF ZAKAT DURING COVID-19 PANDEMIC

This research is expected to be able to provide a good understanding of the behavior of zakat collection from the public and how zakat institutions distribute the zakat. This study uses a quantitative method using panel data and samples from five zakat institutions in Indonesia, such as the National Zakat Agency (Baznas), Rumah Zakat, Rumah Yatim, Dompet Dhuafa, and Inisiatif Zakat Indonesia. Furthermore, the ZIS collection and distribution data that will be analyzed is annual data for the period 2018 to 2021. The results of this study show that the performance of ZIS collection has continued to show a positive trend during covid-19 pandemic, which indicates that ZIS receipts from muzakki are not affected by economic conditions. However, there have been a number of changes of ZIS distribution because it need to prioritize asnaf of fakir, misin, and fisabilillah in order to recover economic conditions due to Covid-19.

The Effectiveness of Zakat Fund Distribution in Alleviating Poverty (A Case of Zakat Institutions in Indonesia)

This research aims to determine the effectiveness of the zakat fund distribution of Indonesia’s zakat institutions in alleviating poverty. This study used secondary data from the zakat institution's annual reports and website information for 2022. The object of this research is only national zakat institutions that have issued annual reports and functional websites used as research objects. Among the 91 zakat institutions, only 14 national zakat institutions meet the requirements as research samples. The research used content analysis as the analysis method. The results of this study show that all zakat institutions have implemented programs to alleviate poverty effectively. This institution prioritizes consumption, social, health, and education programs. Only a few zakat institutions implement housing programs and house renovations which are also part of the basic needs because of the limited funds. Zakat institutions have provided additional expertise through skills and leadership training. Even zakat institutions have built a local economy. No zakat institution has developed a mustahiq network, creating an enterprise zone and regional investment. Due to data limitations, this research is only able to explain 14 national zakat institutions' management distribution which had published annual reports and other information on their websites. The government, muzaki, and, academics could use this research finding to support zakat institutions so that these institutions can increase their contribution to alleviating poverty. The government should pay attention to zakat institutions by building a regulatory framework that triggers the development of these institutions. Keywords: Poverty, Consumption, Education, Investment, Zakat DOI: 10.7176/RJFA/14-6-04 Publication date: March 31 st 2023

Analisis Efisiensi pada Lembaga Amil Zakat Nasional dengan Pertumbuhan Penghimpunan Zakat Terbaik

Purpose: This study analyzes the efficiency of one of the National Amil Zakat Institutions in Indonesia which is the zakat institution with the best zakat collection growth, namely Laznas PPPA Darul Qur'an Foundation. The purpose of this research is to assess the performance of a zakat institution in carrying out its role as a zakat manager. Method: The type of research used is quantitative with a non-parametric approach. The research method in this study is the Data Envelopment Analysis (DEA) method. Results: Based on the results of data processing in 2017-2020 Laznas PPPA Daarul Qur'an financial reports, these findings indicate that Laznas PPPA Daarul Qur'an experienced inefficiency in 2017 and 2018 with an inefficiency level of 95,63% in 2017 and there was an efficiency improvement with a score of 98.95% in 2018. Until finally in 2019 and 2020 Laznas PPPA Daarul Qur'an is at the optimal efficiency value of 100%. Implication: The existence of this research is expected to provide an overview to the community, as well as a reference for other zakat management organizations in assessing the performance of a zakat institution.Novelty: The previously inefficient conditions continue to be addressed by making various efforts through programs to maximize the management of zakat.