Sharia Compliant in Private Zakat Institutions of Riau

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.

Analysis of Mustahik Economic Empowerment Model in Pekanbaru

In Pekanbaru, Indonesia, mustahik empowerment has two model approaches for running the mustahik economic empowerment programs, namely individual empowerment and groups 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 and statistics non-parametric method. After an investigation, from two models empowerment approach that have been implemented in Pekanbaru, researcher found that mustahik income in groups and individualy relatively same result after getting an empowerment program. This result is confirmed by the non-parametric statistical analysis using the Mann-Whitney test. The statistical test result shows 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. In Pekanbaru, Indonesia, mustahik empowerment has two model approaches for running the mustahik economic empowerment programs, namely individual empowerment and groups 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 and statistics non-parametric method. After an investigation, from two models empowerment approach that have been implemented in Pekanbaru, researcher found that mustahik income in groups and individualy relatively same result after getting an empowerment program. This result is confirmed by the non-parametric statistical analysis using the Mann-Whitney test. The statistical test result shows 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.

Sustaining Innovative Success

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 and this means that even though a company can dominate the market with its innovation, it is only extending its period of survival 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.Hence relationship with customer is significantly by their practice in an organization.This study analyzes various cases of Zakat companies that have practice and relationship of customer in order to maintain their innovative success 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 anxiety and effort solve this problem.The specific objectives of the study are to enlighten on Zakat company performance of interest-based practice and innovation as well as relationship Islamic customer through business development ratios,commitment to economy and community, productivity and efficiency ratios and to draw comparisons.

Productive Zakat PROPAZ Steps to Eradicating Poverty in Brunei Darussalam

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. Keyword: poverty, zakat and PROPAZ.

Digitalization of Mustahiq Economic Empowerment Model based on Productive Zakah Fund

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.

Development of Zakat Management Digitalization in Indonesia

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. This paper used a literature and history approach. This paper usefully examines the development of zakat management from each era and the process of digitizing zakat management.

The Prospects of Policies Integration on Zakat and Tax in Indonesia to Overcome the Economics Problem due to the COVID-19 Pandemic

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.

The Mechanism of Managing Zakat Funds in Islamic Banking as Implementation of Corporate Social Responsibility (CSR)

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.

The National Board of Zakat Republic of Indonesia Strategy in Managing the Zakat Potential in Agricultural Sector

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. 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.

The Role of Zakat on Sustainable Economic Development by Rumah Zakat

This study aimed to explain conceptual 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, 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. The purpose of this study was to identity the role of Zakat on sustainable economic development, which was applied by Rumah Zakat. 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. 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 Rumah Zakat in the sustainable economic empowerment community taking into account dimensions such as input, process, output and outcome.