International Conference of Zakat <p style="text-align: justify;">International Conference of Zakat (ICONZ) aims at bringing scholars and practitioners together to discuss zakat in modern era.&nbsp;We welcome the sharing of knowledge resulting related to zakat and&nbsp;Islamic social finance from research from various fields including from inter-disciplinary and multi-disciplinary perspectives. We aim to create an ideal zakat environment for the discussion, exploration and reflection of key issues that are shaping the world through our series of conferences and publications.</p> <p style="text-align: justify;">ICONZ held annually in October, our Annual Conference provides an important opportunity for practitioners and researchers in zakat to not only network and learn but also to debate and vote on new policy. This is our signature and zakat exclusive forum yearly event - bringing together zakat practitioners, local government, external stakeholders and media. Additionally, the ICONZ consists of two days of full plenary, split plenary and parallel sessions where participants will immerse themselves in the zakat challenges discussion.</p> <p style="text-align: justify;">Welcome to the next 4th ICONZ 2020. Website:&nbsp;<a href="" target="_blank" rel="noopener"></a></p> en-US (International Conference of Zakat) (Muhammad Hasbi Zaenal) Fri, 23 Oct 2020 03:18:12 +0000 OJS 60 Technology Adoption among Zakat Institutions in Malaysia <p><em>This research observes technology adoption among zakat institutions in Malaysia. To achieve the said objectives, qualitative methodology approach is adopted in this research where primary data is collected via observation of website or any related materials that support technology application among Zakat institutions in Malaysia which including website, online collection or payment system and others. Findings from the observation indicate that majority of the Zakat institutions have started to utilise technology system in their organization especially with regards to zakat payment. However, there is still lacking of technology usage for zakat distributions, awareness as well as Zakat fund reporting to the public. Overall, as zakat collection and distribution have involved millions of records and its management is still questionable by all parties, it is believed that technology will enhance the operations of Zakat institutions to become more efficient and effective to distribute wealth to the needy. This will at the end increase public trust towards the institutions.</em></p> Marhanum Che Mohd Salleh, Muhamad Abdul Matin Chowdhury ##submission.copyrightStatement## Wed, 21 Oct 2020 07:13:13 +0000 Blockchain and Smart contract’s contributions to Zakat management system <p>Blockchain is an open distributed database that carries out transactions on an open decentralized ledger. It is a technology that will probably be the source of a huge digital change especially in the financial sector. The application of this technology has started to take its first steps recently and its importance is undeniable in an emerging and expanding field such as Islamic finance. In this context, the purpose of this article is to study the integration of the blockchain and one of its important components, namely the smart contract in the management of the compulsory Islamic charity the zakat. To do this, we have developed a funding model linking all the stakeholders in question and the diversities of blockchain technology. We were thus able to conclude huge benefits and technical contributions in this context which encourages Islamic financial institutions to develop more models likely to support this technology without ignoring&nbsp; the compliance with the Islamic jurisprudence rules.</p> Dhiaeddine Rejeb ##submission.copyrightStatement## Wed, 21 Oct 2020 00:00:00 +0000 Zakat Fund Management by Amil Zakat Institutions <p><em>The aims of this paper is to analyze the management of zakat funds by Laznas BSM Umat in the last 3 years (2015-2018). The research method used is a qualitative and descriptive analysis using secondary data in the form of Laznas BSM Umat annual report. The results of this study indicate that: (i). The Laznas BSM Umat distribution and utilization program is spread in several fields, namely: education, social, da'wah, health, economy, humanity, and Al-Qur'an endowments. With the distribution of beneficiary locations throughout Indonesia and several countries in Africa, as well as Asia which was hit by social and human crises; (ii). In managing and distributing ZIS funds and social funds. Laznas BSM Umat formulates 3 (three) superior programs in the form of Mitra Umat Program; Didik Umat Program; and the Simpati Umat Program. Another finding is that the distribution of zakat funds by Laznas BSM Umat is dominated by the poor who are more consumptive in nature. Furthermore, the distribution of zakat funds in the last 3 years (2015-2018) has not been done optimally. The implication of this research is that if the concept of zakat collection and distribution is applied both nationally and multi-nationally, the problem of poverty in Indonesia will be resolved.</em></p> Zulhendra Zulhendra, Nurwahidin Nurwahidin, Fahruroji Fahruroji, Muhammad Zilal Hamzah ##submission.copyrightStatement## Fri, 23 Oct 2020 02:25:06 +0000 Raising Awareness About Autism and Empowering Individuals with Autism <p><em>Purpose – This paper aims to study whether Muslim philanthropy is Autism Aware. The purpose of this paper is to assess the potentials of Zakat Funds in the provision of health care services of autistic children and funding autism research.&nbsp; </em></p> <p><em>Design/methodology/approach – This is mainly a desk review of academic, peer-reviewed literature as well as reports published by international organizations and information provided online by governments and non-government organizations. </em></p> <p><em>Findings – A family with Autism Spectrum Disorders (ASD) needs to deploy human and financial resources for the remaining lifetime of the child. Many poor and middle-class families are unable to meet such huge economic burden. Also, ASD research is lacking due to the dearth of research funds. As philanthropic institution, zakat institutions can potentially respond to the autism issue in terms of funding autism research as well as health care delivery to autistic individuals. </em></p> <p><em>Originality/value – In recent years, in the discourse of Muslim value-based public and social policy, Zakat has emerged as one of the important topics. However, no research has been produced on the potentials of zakat in solving autism issue to the best of the researchers’ knowledge. </em></p> Shemaila Saleem, Foyasal Khan ##submission.copyrightStatement## Wed, 21 Oct 2020 07:48:28 +0000 Mainstreaming Zakat Instrument to Money Demand Function <p><em>In the Islamic economic structure, zakat has been introduced as the main instrument. In the development of the Islamic monetary policy in particular with regard to the amount of money, zakat becomes necessary to investigate its impact. The study focuses in Java, using 200 Muzakki. Structural Equation Modelling (SEM) is adopted to examine the relationship among the seven constructs i.e., Social Values, The Rate of PLS, State, Regulation, Goods and Services, Consumption and Money Demand. While the reliability and validity were established, the structural relationship between the constructs reveals that the integrated money demand model has a strong relationship with the social value in many ways. In relation with goods and services, social value has its significant role to assist the amount of consumption to realize developed money demand model. Islamic social values significantly influence each of good and services as well as money demand model. People will increase the motive for holding money if he wishes to donate some for social purposes. In general, if the people are prosperous, the money demand will increase. Specifically, the result shows several constructs have significant impact in promoting money demand model in Islamic perspective. This suggests that the model as well as the instrument should be further implemented in Islamic money demand.</em></p> Fajrin Intan Safitri, Atika Rukminastiti Masrifah ##submission.copyrightStatement## Wed, 21 Oct 2020 09:26:38 +0000 Performance Management in Indonesia Zakat Institutions <p><em>Zakat management in Indonesia has developed significantly after establishment of BAZNAS (Indonesia National Board of Zakat). Number of zakat fund collected always rise each year even though it has not fulfilled the total potential of zakat collection. In order to escalate it, BAZNAS constructed National Zakat Index (NZI) to measure the macro dan micro development of zakat in Indonesia. Micro aspect deliberates institutional variables; however, there has no strategic objectives guidelines for zakat institution manager to contribute in NZI improvement. Therefore, this research applies Balanced scorecard (BSC) and Fuzzy DEMATEL approach to develop strategic objectives as well as the relationship.</em></p> <p><em>This exploratory research develops strategic objectives with BSC approach with aiming to help LAZs’ managers focusing on specific outcomes and reach better institutional aspect performance of NZI. The developed strategic objectives are fundraising, cost control, fund distribution, muzaki-mustahik satisfaction, muzaki-mustahik growth, community building, partnership, understanding zakat, sharia-based programs, institutional reporting, technology, knowledge management, and amil’s well-being. Furthermore, the relations are also explained in this research. Stakeholders perspective is the final aim of zakat institutions while Learning &amp; Growth perspective become fundamental for the institutional development. Future researches can apply other data collection method and develop performance measurement which consists of outcome measure and performance drivers.</em></p> Muhammad Akbar Fadzkurrahman Annahl ##submission.copyrightStatement## Wed, 21 Oct 2020 09:43:30 +0000 Conceptualizing Zakat Institutions within the Framework of Hybrid Organizations <p><em>Historically, zakah institution was only run by the state, which was indeed managed under the state or public logic. On the other hand, we are now in the era of ‘civic society’, where the ‘bureaucratic decline’ emphasized the incapability of the state to be an efficient actor of development </em><em>(Bawole, Ibrahim, Hossain, &amp; Mensah, 2017; Hirschmann, 1999)</em><em>. The role of non-state actors is increasingly important to be the better development engines. </em></p> <p><em>The fact as mentioned earlier has put these non-state actors of development, including zakah institutions, in a dilemma between two institutional logics: market or commercial logic and public or social logics </em><em>(Schröer &amp; Jäger, 2015)</em><em>. These institutions must face distinct problems which do not occur in a conventional single-logic organization. They regularly need to deal with the conflict between two logics, financial or social logics.</em></p> <p><em>This study aims to conceptualize a further argument that zakah institutions are hybrid institutions, and therefore, a list of lessons could be explored. Systematic Literature Review (SLR) is being applied for obtaining facts and related cases to this study. </em></p> <p><em>Few recommendations to sustain the zakah institutional growth are found. Regarding its organizational legacy </em><em>(Furusten &amp; Junker, 2019)</em><em>, a good communication method to the society will result in the sustainable institutional “business” as a form of “promotion”. According to Battilana (2018), setting organizational goals, structuring organizational activities, selecting organizational members, and socializing organizational members might be able to keep the institution in the hybridity track. Further, instead of creating “entrepreneurship for social value creation”, the better concept is “social value for entrepreneurship” </em><em>(Arogyaswamy, 2017)</em><em>.&nbsp;</em></p> Vita Arumsari, Muhamad Rizky Rizaldy, Putri Syifa Amalia ##submission.copyrightStatement## Wed, 21 Oct 2020 10:03:18 +0000 The The Efficiency of Zakat Collection and Zakat Distribution of Islamic Religious Council Perak (MAIPk), Malaysia <p><em>The study measures the efficiency of zakat collection and distribution by Islamic Religious Council of Perak (MAIPk) in Malaysia between 2013 to 2017. The efficiency of zakat collection and distribution are important to ensure zakat institution achieves the objective that has been established by the society. Previous studies show that the society still have negative perception in the effectiveness of zakat distribution by zakat institutions, hence affect the level of Muslim’s confidence to perform their duties to pay zakat through the institutions. This research applied two-stage DEA analysis to measure the efficiency of zakat collection and distribution. The findings form 3 efficiency measures which are technical efficiency, allocative efficiency and cost efficiency for both MAIPk’s role of collecting and distributing zakat in Perak. The results show that zakat collection full efficiency is achieved in 2017 while that of zakat distribution is in 2015. </em></p> Asmah Mohd Jaapar, Nur Husnina Kamarulzaman ##submission.copyrightStatement## Wed, 21 Oct 2020 10:06:04 +0000 The Role of Zakat Institution in Facing Covid-19 <p><em>In the beginning of 2020, the Coronavirus (Covid 19) appeared, which attacks humans and quickly turns into a global pandemic. Covid-19 has resulted in multidimensional crises such as health, economic, social, and lifestyle crises. Many people in different countries face difficulties in life. Therefore, Zakat as an Islamic social fund has a role in overcoming this crisis, by providing assistance to the communities which is directly affected by the crisis. This study aims to examine the role of Zakat in this crisis from the perspective of Islamic jurisprudence and its application in the zakat institution by taking the case of the Federal Territory Islamic Council (MAIWP) that has done various programmers in helping people who are directly affected by the crisis. This study uses two methods including inductive and analytical approaches to achieve its objectives. Among the most important results of the study: Zakat distribution programs conducted by Baitulmal-MAIWP for zakat beneficiaries affected by Covid-19, was to help ease the burden on ordinary people following the implementation of Movement Control Order (MCO) by the government due to the spread of the Covid-19 pandemic. This program is named “Bantuan Zakat Kecemasan Covid-19” (Zakat Emergency Aid Covid-19) or #MusaadahCovid19MAIWP.</em></p> Hambari Hambari, Arif Ali Arif, Muntaha Artalim Zaim ##submission.copyrightStatement## Wed, 21 Oct 2020 10:09:38 +0000 Business Incubation Model based on Productive Zakatfor Economic Recovery SMEs of Post COVID-19 <p><em>The effect crisis of COVID-19 in economic sector brings an extremely worries for the middle to bottom economic class. The effort of small and medium size enterprises as a backbone of national economic suffered a blow for economic setbacks. This paper aims to formulate the innovation of business model based on community development as an effort to countermeasure an effect of society economic crisis in real sector with formulating of business model innovation based on productive zakat to restore the economy of SMEs affected by the pandemic. This research is qualitative research with descriptive approach. The data used are primer and secondary data and the data collection techniques that carried out by researcher are an interviews with beneficiaries as leaders in the business incubation projects that have been carried out, while secondary data from literature review and business report documents of mustahik. The model of business incubator based on zakat productive has enarmous potential in restoring the economics of micro-small and medium sized entreprises (SMEs) that have been affected by the pandemic. </em></p> Nadia Nuril Ferdaus, Ahmad Hidayatullah, Fatimatuz Zahrati ##submission.copyrightStatement## Fri, 23 Oct 2020 02:34:08 +0000 The Effectiveness of Cash For Work in Handling the Impact of COVID-19 <p><em>COVID-19 pandemic has an impact on all aspects of life, especially the economy. Economic activity has stopped causing a decrease in income and loss of employment, that vulnerable groups are affected by the COVID-19 pandemic. BAZNAS seeks to mitigate the impact of COVID-19 through </em><em>the </em><em>CFW program, an innovation in distributing zakat to vulnerable groups (mustahiq) affected by the COVID-19 pandemic. CFW program helped vulnerable groups, especially food needs. This paper tried to explain the implementation of BAZNAS CFW and to analyze the effectiveness of the program for mustahiq. The study was conducted using a qualitative approach through interviews and documentation methods. The BAZNAS CFW concept is unique, namely collective social empowerment, for mustahiq and </em><em>Small Medium Enterprises (SMEs)</em><em>. The majority of participants who took part in the BAZNAS CFW program gave positive responses regarding the implementation and the impact it had given. That shows CFW was effective in tackling the impact of the COVID-19 pandemic. The advantage of CFW is that it encourages the purchasing power of mustahiq towards economic needs, which can be purchased in the SMEs sector. This empowerment is not only for mustahiq, but also for the SMEs sector. CFW is beneficial for the social environment because it maintains and builds public facilities needed to prevent the spread of COVID-19. However, implementation in the short term is a disadvantage of CFW, meaning that economic improvements can not be seen in the short term. CFW is not a permanent employer program, but temporary work as a response to mitigating the impact of COVID-19.</em></p> Aprilya Fitriani ##submission.copyrightStatement## Fri, 23 Oct 2020 04:55:25 +0000 Zakah in a Complex World <p>The Covid-19 pandemic hits the world economy. On July 2020, some countries have plunged into recession.&nbsp; The prescription from the perspective of Islamic economics and finance need to be formulated. The application conventional methodology like survey or any types of regression will not able to examine the dynamic changes on the economy during the occurrence of pandemic and will fail to draw the very long term situation. In this regard, Islamic economics needs to move forward to utilize the advancement of technology.</p> <p>The use of Agent-based Computational Model (ABM) is one of alternative methodology to develop research in the area of Islamic economics and finance. ABM is a computational study which builds the economy as a complex world, thus, the prescription for economic crisis based on Islamic views can be formulated.</p> <p>This research has two objectives, i.e., (a) to review on how ABM has developed research in the area of Islamic economics and finance, (b) to provide an example on how the use of ABM to develop a model on how zakah may minimize level of Gini index under interest based system.</p> <p>&nbsp;This research finds two main points. First, the number of ABM research in Islamic economics are limited, some of which are still at the development stage of the conceptual framework. Second, the ABM simulation results shows how zakah may minimize level of Gini index. Therefore, this research may be used as one of the references on how to develop and formulate a model in the area of Islamic economic and finance.</p> Diyah Putriani, Gairuzazmi Mat Ghani, Mira Kartiwi ##submission.copyrightStatement## Mon, 26 Oct 2020 02:39:54 +0000 The Factors that Affect the Performance of Amil <p>We investigate the effect o amil fund, size of amil zakat (LAZ) and number of office to financial performance measured by fund collected.</p> <p>We run OLS with 41 observations from 10 amil Zakat (LAZ) from the year 2010 – 2019 with pool data. We find&nbsp; evidence that the increase of Amil would increase financial performance of amil zakat, however size of amil zakat only has marginal effect to financial performance of amil zakat. While number of offices doesn’t have effect to financial performance.</p> <p>Keywords : FInacial performance, Amil fund, size of LAZ and number of office.</p> Achmad Hizazi, Wirmie Eka Putra ##submission.copyrightStatement## Mon, 26 Oct 2020 03:33:16 +0000 The Optimalization of Zakat in Achieving Maqashid Sharia <p>Zakat is one of the instruments for well-being distribution. Zakat is also one of the most significant institution of Islam, in early Islamic zakat proved to be an extremely effective tool for poverty alleviation and inclusive finance. Total potential of zakat in the OIC member countries ranges from 1.8 percent to 4.34 percent of their GDP. Zakat has the potential to be developed economically. In contrary, development and performance of zakat institutions was relatively poor and this is illustrated by the collection of zakat in Muslim countries on average very low, less than 1% of GDP.</p> <p>Maqashid Syariah is considered intellectual methodologies for Islamic studies and Non-Law studies. This has been used by the Muslim scholars to propose Islamic reform and revival in many aspects of live and to address problems of the Ummah in a way that is in line with Islamic tradition and aspirations. The institutions could make the Maqashid Sharia as an essential benchmark to design zakat distribution programs in both countries.</p> <p>Zakat Institution objective should be the leading institution in economic empowerment of society by enacted Maqashid Sharia as the basis of designing the sustainable empowerment indicators. This paper aims to analyze and evaluate institutional program of collecting zakat in reaching Maqashid sharia and to identify the issues and the strategies of Zakat institutions. This study presents a comparison of zakat distribution programs between two countries, Indonesia and Malaysia, represented by Bazis DKI Jakarta and LZS in achieving five Maqashid Sharia aspects. This paper contributes to sustain the social life development in terms of the proper Zakat distribution by considering Maqashid Sharia. The originality of this paper is to provide provide insight for strategy on how Zakat institution could optimize their potency in achieving Maqashid Sharia.</p> Zahra Nabila Kurnia, Rifka Mustafida, Najim Nur Fauziah, Nur Shazni Subri, Farihah Amirah Ahmad Faiz ##submission.copyrightStatement## Mon, 26 Oct 2020 03:37:56 +0000 The Role of Information in Online Zakat Payment Resistance <p>Indonesia has enormous potential for zakat, but the results of collecting zakat are still far from the existing potential. OPZ has made various ways to increase the collection of zakat funds, one of which is by implementing online zakat payments. This study aims to analyze the resistance to using online zakat payment services. The research approach is quantitative with the help of smartPLS software. This study's variables consist of information variables, which are independent variables, while the dependent variable consists of traditional barrier variables, image barriers, usage barriers, value barriers, and risk barriers. Data in this study collected using a questionnaire. The sample of this study was 100 respondents from various regions in Indonesia. The results showed that the information has a significant and negative effect on the traditional barrier variables, image barrier, usage barrier, value barrier. This means that the greater / more information provided by OPZ, the barrier in using online zakat payment services are getting smaller / less. The information variable on the risk barrier shows insignificant and negative results.</p> Syahrul Hanafi ##submission.copyrightStatement## Mon, 26 Oct 2020 03:40:56 +0000 What is The Priority of Audit Problems at Zakat Institutions in Indonesia <p><em>This study aims to determine the opinions and recommendations from the experts regarding to the problem of the audit system in zakat institutions in Indonesia to determine the priority of the most important variables to be fixed. This research was conducted in August 2020 using primary data obtained from interviews with experts consisting of academics, practitioners and regulators with a background in sharia economics. The data were analyzed by the Delphi method to find the main priority and agreed upon convergence by experts. The results showed that of the 15 variables of audit problems at zakat institutions in Indonesia, there are 13 variables with convergent-convergent consensus based on expert opinion and only 2 variables with divergent consensus. The 3 main priority problems of auditing in zakat institutions in Indonesia are (1) Insufficient number of sharia auditors, (2) The absence of strong rules related to sharia auditing, (3) HR competence. This research can be used by readers to make improvements in the audit system of zakat institutions in Indonesia with priority according to the findings of this study. This research is the first research that comprehensively calculates the expert's assessment regarding audit problems in Indonesian zakat institutions using the Delphi method and its priority recommendations.</em></p> Aisyah Assalafiyah, Aam Slamet Rusydiana ##submission.copyrightStatement## Mon, 26 Oct 2020 03:44:32 +0000 An Empirical Examination of Factors Influencing the Behavioral Intention to Use Zakat-Based Crowdfunding Platform Model for Countering the Adverse Impact of COVID-19 on MSMEs in Indonesia <p><em>ABSTRACT</em></p> <p><em>This study aims to examine the behavioral intention of the Muslim crowd funders to use the Zakat-based crowdfunding platform model by adopting the concept of the Unified Theory of Acceptance and Use of Technology (UTAUT) Model. The platform model, as </em><em>an intermediary between Muslim crowd funders and MSMEs, </em><em>provides financing services for MSMEs to fight any kind of situation/pandemic like COVID-19 nowadays. This study used the primary data that is collected by using the online survey questionnaires, and then the analysis is conducted using partial least squares (PLS) regression. The empirical study shows that all the variables except for facilitating conditions have a significant positive effect on the intention of Muslim crowd funders to use the Zakat-based crowdfunding platform model</em><em>.</em><em> The present study will help the government and policymakers to plan appropriate intervention strategies to minimize the adverse impact of the COVID-19 pandemic on MSMEs in Indonesia. Furthermore, the study will contribute to the existing literature especially on the factors influencing the adoption of the Zakat-based crowdfunding platform model. </em></p> Sulaeman Sulaeman, Sri Yayu Ninglasari ##submission.copyrightStatement## Mon, 26 Oct 2020 03:48:53 +0000 A Review on the Contribution of Zakat and Taxation towards Economic Development Postulated by Two Contemporary Research Scholars <p><em>This paper is an attempt to analyze the contributions of zakat towards an economic system. Often zakat is viewed as a taxation tool which is focused on anti-poverty policies, especially during the classical Islamic Civilizations. The paper will review and discuss postulations bought by Russel Powell and his attempt to conceptualize zakat as a modern taxation system, and Monzer Kahf and his analysis of how zakat can truly impact economies in modern times. The precedes of such discussions have found that zakat is not an equal substitute for modern-day taxation systems, and more importantly, it was never truly designed to solve all poverty issues in existence. There is a reconciliation that zakat plays a more important role in spirituality than it does in worldly pragmatism. Needless to say, zakat has contributed to poverty alleviation in the past, however along with other pivotal mechanisms concurrently in place such as Awqaf (endowments) and Infaq (disbursements).</em></p> Muhammad Aneeq Aiyman Roslan, Mohamed Aslam Akbar ##submission.copyrightStatement## Mon, 26 Oct 2020 07:47:28 +0000 Utilizing Zakat for Attaining Sustainable Development Goals (SDGs) in Nigeria <p><em>At the United Nations Conference in Stockholm in the early 1970s, the idea of sustainable development was mooted. It became a global phenomenon in the year 2000 when the United Nations (UN) declared the Millennium Development Goals (MDGs) with over one hundred and eighty-nine member states and about twenty-three international organizations. With the expiry date of the Millennium Development Goals (MDGs) in 2015, the Sustainable Development Goals (SDGs) came in vogue. The SDGs as a global project could only be attained through joint efforts of all sectors of human life, religion being one. In human history, religion plays significant developmental roles, hence a strong factor in attaining developmental goals. Islam in particular could not be left out in any developmental project, as it is not only a religion and but also a way of life. Indeed, the maqasid ash-shari’ah are meant for all-round development and protection of human life – religion (Din), life (Hayat), procreation (Nasl), Property (Māl) and Intellect (<sup>c</sup>Aql). This study is designed to specifically relate the institution of zakat in Islam to attainment of the Sustainable Development Goals (SDGs) with particular reference to Nigeria as a country. Historical, descriptive and exegetical methods are adopted for this purpose. The paper therefore concludes that zakat can be a veritable tool for achieving the SDGs if properly harnessed, monitored and utilized for the purpose it is meant.</em></p> Rafiu Ibrahim Adebayo ##submission.copyrightStatement## Mon, 26 Oct 2020 08:26:36 +0000 The Role of Zakat in Reducing the Poverty Gap <p>Poverty is a crucial problem in Indonesia. Poverty rate in Indonesia is high when compared to other countries in Southeast Asia. We need continuous efforts between government and society, one of them is by maximizing the potential of zakat in Indonesia. This paper aims to analyze the utilization of zakat funds on poverty reduction in Indonesia, especially through program Entrepreneurship Assistance in Desa Berdaya Rumah Zakat. There are 2323 samples taken from the monthly report Entrepreneurship Assistance. The method used is a descriptive method with a quantitative approach that aims to explain and analyze comprehensively the role of zakat in poverty alleviation and indicators. Analysis tools used such as headcount index, poverty gap, income gap, sen poverty index dan FGT index is based on three poverty indicators, namely the poverty line, had kifayah and the nisab of zakat. Distribution of zakat has an impact on increasing the income and business scale of the program recipients, with the result that reducing the depth and severity of poverty in Indonesia</p> Ulfah - Choirunisa, Sendi Permadia, Aditya Rahmat Gunawan ##submission.copyrightStatement## Mon, 26 Oct 2020 09:43:49 +0000 Influence of Zakat on Sejahtera Strategic Position and Action <p><em>Zakat is religious duty for Muslims. Muslim-owned companies also paid zakat. With religious duty in mind, there is no expectation of worldly rewards. When companies are constantly paid zakat, there is good effect to the companies’ performance and competitive advantages. This study postulated that zakat enables companies to gain sejahtera strategic position and action for sustainable performance. The case study on three different companies that paid zakat showed sejahtera position and action. The study uses strategic position and action evaluation (SPACE) Matrix to investigate the influence of zakat on sejahtera strategic position and action. The results of the study showed that zakat has worldly effect.</em><br><br></p> Suhaimi Mhd Sarif, Dolhadi Zainudin ##submission.copyrightStatement## Thu, 12 Nov 2020 04:11:52 +0000 Techno-Efficiency Analysis of Zakat Institutions in Indonesia <p><em>Zakat institutions play an important role in managing zakat effectively and efficiently as described in Law no. 23 of year 2011. This study aims to analyze the efficiency of zakat institutions in Indonesia and determine the best ranking of the units observed. This study uses a descriptive quantitative approach with the Super Efficiency Analysis technique Data Envelopment Analysis (DEA). The study objects are BAZNAS, Rumah Zakat, Dompet Dhuafa, and YBM PLN with the 2016-2018 observation period. Personnel costs, operational costs and socialization costs are input variables. While the output variables used are the amount of zakat collection and the amount of zakat distribution. The results of super-efficiency measurement show that the 3 best DMU rankings were achieved by YBM PLN 2016, BAZNAS 2018 and BAZNAS 2017. While the other 9 DMUs were inefficient. Inefficiency is due to the not optimal amount of zakat collected and distributed and the high use of socialization costs. The variable of the amount of zakat collected is the most sensitive variable to the value of efficiency. To achieve performance efficiency, technology can be utilized to improve input and output. This research can be used as an evaluation material for zakat institutions to optimize efficiency.</em></p> Nikmatul Atiya, Tika Widiastuti, Eko Fajar Cahyono, Siti Zulaikha, Imron Mawardi ##submission.copyrightStatement## Thu, 12 Nov 2020 00:00:00 +0000 Can Zakat Charity Help Reduce Economic Inequality? <p><em><strong>Purpose</strong> – This paper suggests an agent based model of economic behavior based on which it argues that the Islamic charity of Zakat can be rationalized as it significantly reduces wealth inequalities.&nbsp;</em></p> <p><em><strong>Design/methodology/approach</strong> – An Agent Based Model (ABM) of wealth distribution (Wilensky, 1998) is configured to introduce Zakat in the model. Simulations were run in the model with ordered and random distribution of Zakat charity and wealth distribution pattern compared with the standard simulation without Zakat.</em></p> <p><em><strong>Findings</strong> – The impact of this very small charity on the part of the rich (2.5% of net wealth) showed significant impact on wealth distribution pattern as it changed the power law distribution into normal distribution of wealth.</em></p> <p><em><strong>Practical implications</strong> – The results emphasize non-conventional handling of the economic problem of poverty and wealth signifying the importance of faith based policing</em></p> <p><em><strong>Originality/value</strong> – The paper contributes an agent based simulation which is a relatively newer technique to study human behavior and is commensurate to complexity theory. Its use is relatively rare in Islamic Economics and the paper is the first to propose a decentralzied model simulation of Islamic charity of Zakat.</em></p> Muhammad Asif Jaffer ##submission.copyrightStatement## Thu, 12 Nov 2020 04:22:56 +0000 Exploring Strategies to Enhance Zakat Role to Support Sustainable Development Goals (SDGs) <p><em>The purpose of this study is to find out what </em>are key elements of constraint, strategies and stakeholders and to construct some strategies that may help enhance the role of zakat in achieving SDGs. <em>This study uses a mix method, combining </em><em>Delphi method and Interpretative Structural Modeling (ISM) by conducting literature studies and In-depth interviews with experts, practitioners and academicians. </em><em>In realizing Sustainable Development Goals (SDGs), it requires the greater role of Zakat as a financing instrument. </em><em>E</em><em>xperts, </em><em>practitioners</em><em> and academicians agreed that </em><em>Strategy to Enhance Zakat Role to Support Sustainable Development Goals (SDGs) requires synergy between stakeholders. This is in line with 17<sup>th</sup> goal</em><em> of SDGs, </em><em>partnerships for the goals</em><em>. In managing zakat, innovation is needed by utilizing fintech in zakat information system. The process of strengthening and monitoring zakat management must go through structured strategic steps to realize the acceleration of zakat management development. Researchers provided an analysis that BAZNAS and LAZ should collaborate with related parties to collect zakat such as fintech companies and coordinate with other institutions to distribute social funds to reduce overlapping distribution and to link programs or activities with SDGs. </em></p> Tri Alfiani, Nashr Akbar ##submission.copyrightStatement## Thu, 12 Nov 2020 04:30:39 +0000 The Zakat & Technology <p><em>This study aims to determine the development and trend map of the Zakat and Technology outbreak research that is published by reputable journals in the theme of Islamic economics and finance. The data analyzed were more than 440 publications of indexed research publications. The export data is then processed and analyzed using the R Biblioshiny application program to find out the bibliometric map of the development of the role of Islamic economics and finance in zakat and technology research. The results showed that the number of publications on the development of the role of Islamic economics and finance research experienced a significant increase. The results show that the highest number of document types are journaled articles. The most popular authors are Kuran T, and the most popular keyword topics are zakat, Islamic, and Indonesia. </em></p> Nailah Nailah, Aam Slamet Rusydiana ##submission.copyrightStatement## Thu, 12 Nov 2020 04:36:28 +0000 Analysis of the Recipients of Zakat and the Current Situation <p><em>The second most important pillar of Islam after prayers is Zakat. In the Qur'an, the command of obligatory prayers and zakat has been mentioned together in (82) places. Zakat is the backbone of the Islamic economic system. The philosophy behind the ruling on the payment of Zakat is that the Islamic government should provide the whole society with such an economic system, way of life and social structure in which the needs of the needy people of the society can be met. Islam has made it the duty of every rich Muslim to withdraw one and a half per cent of his accumulated wealth on an annual basis and deposit it collectively in the government treasury. Government has to spend the money of Zakat on meeting the needs of the poor, needy and impoverished people of the society. This is only the right of those deserving whose details have been explicitly stated in the books of Qur'an, Hadith and Fiqh. Zakat is the right of human beings, on the one hand, and on the other hand, it is also the right of Allah. Due to its non-payment, on the one hand, the right of human beings is denied and on the other hand, the right of Allah Almighty is denied. Therefore, it is very important to deliver the amount of Zakat to its rightful owners. The Qur'an mentions eight uses of zakat. It is an important issue in the present times to bring Zakat to its actual recipients. This article examines the recipients of Zakat and the current situation and how these recipients can be made appropriate in a proper manner.</em></p> <p>&nbsp;</p> Muhammad Suleman Nasir, Fida Ur Rahman ##submission.copyrightStatement## Thu, 12 Nov 2020 04:43:05 +0000 Optimization of Zakat for Sustainable Development Goals <p>Zakat as a wealth distribution mechanism has an impact on reducing poverty as the most important point in achieving the sustainable development goals (SDGs). An important role can be played by zakat institutions in reducing poverty levels, especially zakat institutions in regions in Indonesia. This study aims to explain the mechanism of zakat as an instrument of Islamic economy in order to contribute to the achievement of SDGs in Aceh Province by optimizing the role of the Aceh Baitul Mal. With the grounded research method, this research is carried out by collecting data through interviews with academics of Islamic studies, Islamic boarding school scholars and zakat practitioners who are competent to assess the role of zakat in poverty alleviation in Aceh. The results showed that to achieve the sustainable development goals (SDGs) Baitul Mal Aceh must optimize zakat as a transfer of wealth from muzakki to mustahik, both optimizing the collection and optimizing the distribution of zakat. Optimization of zakat collection is carried out by means of education, socialization, and good zakat services, while optimization of distribution is carried out by prioritizing zakat for poverty alleviation programs, ensuring the accuracy of zakat recipients, and distribution using consumptive and productive methods.</p> <p><strong>Keywords: zakat collection, zakat distribution, SDGs </strong></p> Muhammad Haris Riyaldi, Suriani Suriani, Ridwan Nurdin ##submission.copyrightStatement## Wed, 25 Nov 2020 03:08:11 +0000 The Role of Zakat on Sustainable Economic Development by Rumah Zakat <p><em>T</em><em>his study aimed to explain </em><em>conceptual </em><em>the role of Zakat on sustainable economic development by Rumah Zakat. Rumah Zakat is a philanthropic institution that manage zakat and other social funds through community empowerment programs. In running the program, </em><em>including economic empowerment and socio health services are designed for these recipients. Rumah Zakat connection with the establisment of SDGs (Sustainable Development Goals) which is to help impoverished recipients economically and socially. The primary goal of Zakat on sustainable economic development, not only limited to economic variables, but based on Islamic principles has comprehensive characteristics. The characteristics includes moral, material, spiritual and social aspects. In other words, sustainable economic development is closely related to improving people living standar. </em><em>The purpose of this study was to identity the role of Zakat on sustainable economic development, which was applied by Rumah Zakat.</em> <em>This study used the descriptive method and qualitative analysis. The data source was secondary data collected from documents and texts related to the research topic, be it books, articles, newspapers, journals or others. The results showed that the role of zakat on sustainable economic development by rumah zakat has been quite good and in accordance with the principle of Islamic economics.</em><em> The contribution of the program productive implementation has been aligned with four goals in the sustainable development i.e. Senyum Juara, Senyum Lestari, Senyum Mandiri and Senyum Sehat. Performance of </em><em>Rumah </em><em>Zakat in the sustainable economic empowerment community taking into account dimensions such as input, process, output and outcome.</em></p> Selamat Muliadi ##submission.copyrightStatement## Wed, 25 Nov 2020 03:12:34 +0000 The National Board of Zakat Republic of Indonesia Strategy in Managing the Zakat Potential in Agricultural Sector <p><em>Zakat as one of the pillars of Islam occupies a very basic and fundamental position, hence His Messenger has ordered Muslims to believe and pay zakat as a form of obedience and the continuation of a harmonious life. Based on agricultural statistics for the period 2015-2019, the agricultural is still as the most important sector in supporting national economic development and it is the sector where most of the Indonesian population works as farmers. The Indonesian people who depend on the agricultural sector are around 38.70 million people, or the equivalent of 30.46%t of the total population in Indonesia. On the other hand, so far, zakat collection has still focused on zakat on assets, income and zakat fitrah, and has not yet touched the agricultural sector massively. Meanwhile, it is known that the potential for zakat in the agricultural sector is very large and until 2018 it is estimated at IDR64.61 trillion. Based on the above, this study seeks to examine how Baznas’ strategy is to manage the potential of zakat in the agricultural sector so that it can lead to economic growth in the community, especially agricultural communities in Indonesia.</em></p> <p><em>The results show that there are several strategies implemented by Baznas in managing agricultural zakat and these have been implemented in various forms of programs such as: (i). The system for cultivating agricultural land and providing superior seeds based on zakat; (ii). Agricultural assistance program; (iii). Mustahik move to muzaki (Green Horti) Program; and (iv). Expedition of zakat and economic empowerment program. Another finding is that zakat institutions are still not maximal in conducting socialization and assistance, as well as empowering rural communities. Baznas must start optimizing the collection of agricultural zakat and need to improve performance in making innovative programs that cover all regions in Indonesia.</em></p> Ika Yulita, Muhammad Zilal Hamzah, Nurwahidin Nurwahidin, Fahruroji Fahruroji ##submission.copyrightStatement## Wed, 25 Nov 2020 03:26:49 +0000 The Mechanism of Managing Zakat Funds in Islamic Banking as Implementation of Corporate Social Responsibility (CSR) <p><em>Bank Syariah Mandiri can strengthen its enrichment to the development of the country's economy, unexpectedly the improvement of people's well-being through the bank's business and also Corporate Social Responsibility (CSR) activities. Bank Syariah Mandiri CSR consists of zakat, infaq and sadaqah funds as well as additional social funds proposed for mustahik who need according to the criteria set by the management of BSM in collaboration with LAZNAS BSM. Bank Syariah Mandiri was placing Corporate Social Responsibility activities (Corporate Social Responsibility / CSR) within the framework of attempting company to obtain sustainability (sustainability) in the long run. The implementation of CSR programs in the form of social development refers to the Mandiri Syariah Cooperation Agreement (PKS) and the National Amil Zakat Institution (LAZNAS) Bangun Sejahtera Mitra (BSM) No. 21/560-PKS / DIR; 18/002 / PKS / YBSMU. The management mechanism of CSR programs in Mandiri Syariah has 2 (two) sources of funds, namely the Sadaqah Infaq zakat Fund (ZIS) and the Virtue / Social Fund. LAZNAS BSM, as an amil zakat company selected and mandated to manage zakat funds from BSM comply with the rules and regulations applicable.</em></p> Zulfikar Hasan ##submission.copyrightStatement## Tue, 08 Dec 2020 08:00:38 +0000 The Prospects of Policies Integration on Zakat and Tax in Indonesia to Overcome the Economics Problem due to the COVID-19 Pandemic <p><em>Previous research, regarding the prospect of zakat policy as a tax credit, was conducted using the Analytic Network Process (ANP) method, using expert respondents. To obtain findings from respondents with different backgrounds, to make it more comprehensive, this research was continued by using the SEM (Structural Equation Model) method, by filling in a questionnaire, as many as 235 respondents from all over Indonesia were random. The research objective is to determine the variables that affect the preferences and participation of muzaki and taxpayers, willing to pay taxes and zakat, increase public finances, which can be used as a solution to the sharp decline in aggregate economic supply and expenditure in Indonesia, due to the COVID-19 pandemic. The results showed that the regulatory variables, zakat incentives as tax credits, technology-based services, socialization and promotion have a significant effect on the preferences of muzaki and taxpayers. Meanwhile, regulatory variables, zakat incentives as tax credits, socialization and promotion have a significant effect on muzaki and taxpayer participation. Meanwhile, technology services and preferences in this study do not have a significant effect on the participation of muzaki and taxpayers. When all sectors of the commercial economy experience a decline or stagnate, the government must be able to move the philanthropic sector, so that the economy continues to run, aggregate demand and supply continues to run, and people's purchasing power is maintained, especially for low-income people. </em></p> Any Setianingrum, Nurul Huda, Perdana Wahyu Santosa ##submission.copyrightStatement## Tue, 08 Dec 2020 08:19:25 +0000 Sustaining Innovative Success <p><em>Innovation has become an important goal for ICT companies. Companies that have succeeded in innovations like Apple, Google, Amazon are speeding up other leaps and followers such as Samsung Electronics, LG Electronics are chasing right behind them. In addition, companies also innovate to change their competition with their original ideas and entrepreneurial spirit. Unfortunately, innovation is not in a necessary and sufficient relationship with the company's success</em><em> and</em> <em>t</em><em>his means that even though a company can dominate the market with its innovation, it is only extending its period of surviv</em><em>al</em><em> and the lifespan of innovation is gradually decreasing. Even though a company can finally achieve the first place through much endeavour, maintaining this success is much more difficult.</em><em>Hence relationship with customer is significantly by their practice in an organization.</em><em>This study analyzes various cases of </em><em>Zakat</em><em> companies that have </em><em>practice</em> <em>and relationship of customer in order</em><em> to maintain their innovative success</em> <em>and propose consumer-cantered innovation as a solution. In this case there are various ways to create user-cantered innovations among others companies need to predict consumer demand dynamically and consistently change. In addition, companies should also use proactive observation methods and big data analysis to find the hidden ones claims and finally the company also needs to identify the risks such as waste, discomfort</em> <em>anxiety and effort solve this problem.The specific objectives of the study are to enlighten on </em><em>Zakat company</em><em> performance of interest-based </em><em>practice and innovation as well as relationship</em><em> Islamic </em><em>customer</em><em> through business development ratios,commitment to economy and community, productivity and efficiency ratios and to </em><em>draw</em><em> comparisons.</em></p> Muhamad Fairos bin Mohamad Shah ##submission.copyrightStatement## Mon, 14 Dec 2020 10:58:33 +0000 Digitalization of Mustahiq Economic Empowerment Model based on Productive Zakah Fund <p>Poverty is a social problem that requires effective and sustainable management. Many parties have made various efforts to overcome poverty. However, the poverty reduction model that was built tended to only use a charitable approach. So that’s only creates a sense of dependence on aid. Poverty reduction requires the involvement of all elements of society, which in a systematic, sustainable, holistic and integrated manner. In line with that, the Islamic economic system offers an alternative in overcoming various socio-economic problems in society, through the instrument of zakah. Although many studies have found that the potential for zakah is very large, the collection and distribution of zakah funds has not been carried out optimally, so that it has not had a significant impact on poverty. Therefore, facing the current development, it is necessary to digitize the proper mustahiq economic empowerment model. The research type used is in the form of field research with a qualitative methods by conducting a deep review of various literatures. The research concludes that the proper digitalization of the mustahiq economic empowerment model can be carried out in a creative productive manner, by distributing a zakah that cannot directly used or spent by the mustahiq. So that the utilization of zakah itself, will have an economic impact on the mustahiq. In order to make this creative productive distribution model runs successfully, it requires coaching and mentoring activities. Coaching and assistance carried out for mustahiq must be adjusted with the era development, through the use of digital technology.</p> Aliman Syahuri Zein, Delima Sari Lubis, Annida Karima Sovia ##submission.copyrightStatement## Mon, 14 Dec 2020 10:44:24 +0000 Sharia Compliant in Private Zakat Institutions of Riau <p><em>This study aims to understand the role of Sharia Supervisors in the private Zakat Institution (LAZ) as well as other aspects of sharia compliance, such as Zakat fatwa on the perspective of Zakat officers. According to Decree of the Minister of Religion Number 333 / 2015 that LAZ as register must have a sharia supervisor. Sharia compliance of an institution could rely on the role of the sharia supervisory board (SSB). Some literature discussing this topic is still dominated study on Islamic financial institutions (IFIs), especially in Islamic Banks. Therefore this article will contribute to the body of knowledge, especially in the zakat literature. Data were gathered from five presiding officers of private zakat institutions in one province in Indonesia which consists of three presiding officers from provincial LAZ representative and two presiding officers from LAZ district. The study found that Sharia compliance in LAZ had many weaknesses such as lack of sharia control by sharia supervisors, a member of the sharia supervisory board who does not follow the latest issues about Zakat or the absence of competency requirements to be a sharia supervisor at LAZ and also did not make Zakat fatwa issued by MUI as the primary reference by zakat officer. This information will be useful for stakeholders, including supervisory authorities and regulators.</em></p> Devi Megawati ##submission.copyrightStatement## Mon, 14 Dec 2020 11:07:14 +0000 Analysis of Mustahik Economic Empowerment Model in Pekanbaru <p><em>In Pekanbaru, Indonesia, mustahik empowerment has two model approaches for running the mustahik economic empowerment programs,&nbsp; namely individual </em><em>empowerment &nbsp;and groups </em><em>empowerment. This paper aims to analyze whether two model approach of mustahik empowerment can increase household income and maximize alleviate poverty. To analyze those models, we used qualitative&nbsp; and statistics non-parametric method. After an investigation, from two models </em><em>empowerment approach that have been implemented in Pekanbaru, researcher found that </em><em>mustahik<strong> income in groups </strong></em><strong><em>and individualy relatively same result after getting an empowerment program</em></strong><strong><em>. </em></strong><strong><em>This result is confirmed by the non-parametric statistical analysis using the Mann-Whitney test</em></strong><em>. The statistical test result shows &nbsp;that the two mustahik empowerment models implemented by zakat institutions in Pekanbaru still did not perform maximally in increasing mustahik household income and poverty alleviation because the result is still below 50 percent by using the World Bank and BAZNAS standard of poverty line. Nevertheless, those models are success to alleviate poverty if use the Government standard of poverty line. This result implies that the zakat institutions to should find another approach to reach the BAZNAS or World Bank standard of poverty line. </em></p> <p><em>In Pekanbaru, Indonesia, mustahik empowerment has two model approaches for running the mustahik economic empowerment programs,&nbsp; namely individual </em><em>empowerment &nbsp;and groups </em><em>empowerment. This paper aims to analyze whether two model approach of mustahik empowerment can increase household income and maximize alleviate poverty. To analyze those models, we used qualitative&nbsp; and statistics non-parametric method. After an investigation, from two models </em><em>empowerment approach that have been implemented in Pekanbaru, researcher found that </em><em>mustahik<strong> income in groups </strong></em><strong><em>and individualy relatively same result after getting an empowerment program</em></strong><strong><em>. </em></strong><strong><em>This result is confirmed by the non-parametric statistical analysis using the Mann-Whitney test</em></strong><em>. The statistical test result shows &nbsp;that the two mustahik empowerment models implemented by zakat institutions in Pekanbaru still did not perform maximally in increasing mustahik household income and poverty alleviation because the result is still below 50 percent by using the World Bank and BAZNAS standard of poverty line. Nevertheless, those models are success to alleviate poverty if use the Government standard of poverty line. This result implies that the zakat institutions to should find another approach to reach the BAZNAS or World Bank standard of poverty line. </em></p> Budi Trianto ##submission.copyrightStatement## Mon, 14 Dec 2020 10:53:44 +0000 Development of Zakat Management Digitalization in Indonesia <p><em>Indonesia is a country with the largest Muslim population in the world as much as 87.2 percent of the total population. Therefore, Indonesia has enormous potential in the development of zakat as an effort to alleviate poverty and economic inequality. Also, Indonesia is ranked 5th in the country with the largest internet users. Seeing this potential, zakat institutions in Indonesia are digitizing their management. This study aims to determine the history of the management of zakat institutions, from traditional management to digitalization. Also, to find out the benefits of managing zakat institutions digitally. This study only focuses on the national zakat institution (BAZNAS). This paper seeks to fulfill the historical demand for knowing the management of zakat in each era because there are no studies that discuss the history of digitizing zakat management. </em><em>This paper used a literature and history approach. </em><em>This paper usefully examines the development of zakat management from each era and the process of digitizing zakat management. </em></p> Siti Zubaidah, Afifah Afifah ##submission.copyrightStatement## Mon, 14 Dec 2020 09:47:54 +0000 Productive Zakat PROPAZ Steps to Eradicating Poverty in Brunei Darussalam <p><em>The issue of poverty is not a new thing and the way to eradicate it is not easy. In fact, it takes a long time and takes a lot of steps, strategies, effective methods also takes a lot of involvement from various parties and so on. This issue should not be left out, it needs to be addressed in an effective way. As an islamic state, there are many ways to deal with poverty according to Shariat policy, which is zakat. Islam is very concerned about justice, well-being and harmony of the people. One of the purposes of zakat is to improve the well-being of the people.Through zakat, the rights of the poor, the poor are upheld and helped. Therefore, apart from zakat which is consumptive, it is also enabled through zakat which is productive which is to increase or as venture capital. Majlis Ugama Islam as the zakat manager of Brunei Darussalam has tried to diversify the steps of assistance in order to help asnafs who need especially the poor. Beside to distributing zakat funds consumptively, MUIB also holds a new program as a means of productive distribution called PROPAZ. PROPAZ introduced as part of the expected distribution method to reduce poverty in Brunei Darussalam.</em></p> <p><em>Keyword: poverty, zakat and PROPAZ.</em></p> Rakinah @ Maimunah Haji Masri ##submission.copyrightStatement## Mon, 14 Dec 2020 10:47:09 +0000