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Journal of Indonesian Economy and Business

Volume 27, Number 2, 2012, 174 – 191

MODEL OF POOR SOCIETY EMPOWERMENT THROUGH


OPTIMIZING THE POTENTIAL OF ZAKAT:
A Case Study in Lampung Province

Keumala Hayati
Lampung University
(umi_asra@yahoo.co.id)

Indra Caniago
Informatics and Business Institute (IBI) Darmajaya
(igoc4n@gmail.com)

ABSTRACT

Previous research found a large zakat potential in Lampung province that reached Rp
644 billion (opinion 2 percent from GDRP) and Rp1.3 trillions (opinion 4.3 percent from
GDRP). This potential could assist the government in tackling poverty. Based on this
potential, further research was to design Model of Poor Empowerment through Optimizing
the Potential of Zakat.
The method used is a case study. There were five propositions developed, namely: (1)
Optimization of the collection of zakat requires synergy role between LAZ/BAZIS (Zakat
Executor Institution), government and society, (2) Empowerment Program of the poor
through productive zakat by LAZ could be done by using Community-Based Development,
(3) the distribution of zakat in the effort of empowering the poor requires synergy
programs between LAZ and the government, (4) the appropriate organizational structure
of LAZ is Geographic structure, and (5) Management of collection and distribution of
zakat depends on a reliable information system.
The result shows that the role of government is as obligatory zakat regulator either to
individuals, companies, and government agencies. Furthermore, Muzakki consisting of
individuals, corporations and government agencies collected their zakat to LAZ/BAZIS. In
the case of zakat distribution, government and LAZ should work together so the
government's poverty reduction programs and LAZ empowerment of the poor program will
be mutually synergistic and will not overlap each other. LAZ could also run the program
of the Community-Based Development. The study also found LAZ should use geographical
organizational structure. This structure allows the formation of decentralized LAZ
regency/city. Further LAZ works need the support of a reliable information system.
Keywords: Empowerment of the poor, zakat potential, synergy between government and
LAZ poverty reduction program, Community Based Development
2012 Hayati & Caniago 175

INTRODUCTION more the potential of zakat can be made use.


Zakat potential is very large to overcome The potential of zakat in each regency/city can
poverty in Indonesia. The survey result on also be made into inter-regency/city cross sub-
zakat potential done by Language and Culture sidy. Regency with low GDRP and high poor
Center UIN Syarif Hidayatullah Jakarta and family (RTM) can be subsidized from other
Ford Foundation in 2004-2005, shows that the regencies/cities with abundant zakat earnings.
potential of Zakat, Infaq, Sadaqah (ZIS) The distribution of Zakat Infaq Shadaqah
reached Rp19,3 trillion each year. If this (ZIS) does not necessarily mean to spend the
amount is projected to 2007 with inflation entire ZIS, but instead it should serve as an
correction of BPS version in 2005 and 2006 empowerment of the poor citizens. Therefore,
each 17 percent and 6,6 percent in 2007, the zakat must be collected by Zakat Excecutor
potential of the accumulated zakat should Institution (LAZ) rather than directly distrib-
reach 24 trillion (Asnaini, 2008). uted to the beneficiaries (those who deserve to
receive it/mustahik), which bring about the
The research result of Hayati & Caniago
absence of the guidance and empowerment of
(2011) shows that earning of zakat in Bandar
the beneficiaries (mustahik). Zakat Executor
Lampung in 2009 went over Rp700 million.
Institution (LAZ) is a legal and professional
This amount is far lower than the expected
institution upon which the assignment of rep-
zakat potential that reaches 644 billion each
resenting the beneficiaries (mustahik) and of
year with estimated Indonesian zakat (2 per-
executing zakat is laid.
cent) and Rp1,3 trillion each year with the
average estimated amount from eight Islamic The problems in the utilization of zakat
countries (4,3 percent). Whereas the local potentials are among others, the weak trust of
government of Lampung province, for exam- society toward the Zakat Executor Institution
ple in 2007 and 2008, budgeted fund for social (LAZ), the weak professionalism of the exist-
department Rp29 billions and Rp21 billions, ing LAZ, the less pro-active and passive LAZ
including other programs of poor empower- participants in serving the public, the weak
ment. information system for zakat data base, the
weak administration of zakat, the weak bu-
On the other hand, the amount of poor
reaucracy of LAZ, the weak coordination of
citizen in Lampung province was quite high,
LAZ, the existence of ”unhealthy competition
going over 20percent. This big potential cer-
and acquisition for targeted field among
tainly can assist and save the government’s
LAZ”, the weak surveillance on the existing
budget in overcoming poverty. If such poten-
LAZ, the weak sanction against the irrespon-
tial of zakat is allocated to poor families
sible/untrustworthy and syaria-uncommitted
(RTM) as much as USD 1 a day based on
of LAZ, and the lack of competent human
MDGs, two Regencies will be freed from pov-
resource to manage LAZ (Mahmudi, 2009).
erty, namely Bandar Lampung and Metro.
Provided that the average estimation of eight The research result shows the motivation
countries is 4,3percent, the number of regen- of paying zakat is determined by two things,
cies/cities of which poor families can be freed namely, the knowledge and the government
from poverty line with USD 1 per a day in- role (Hayati & Sari, 2007). This finding shows
creases, i.e. Bandar Lampung, Metro, Tulang that it requires the government’s role in
Bawang and Central Lampung. Thus, the po- collecting zakat, so zakat can be collected op-
tential of zakat to free poor families from pov- timally. This way, LAZ’s attention can be
erty line depends on the amount of earning focused on the empowerment of poor citizens,
PDRB and estimation of zakat percentage, the so it will not be distracted by zakat rais-
more GDRP and zakat percentage are, the ing/collection.
176 Journal of Indonesian Economy and Business May

Based on the elaboration above, the pur- of fundraising is a problem and a serious iden-
pose of this research is to find out a model of tity crisis, according to Drucker. The objec-
poor society empowerment through optimizing tives of fundraising strategy indeed allows an
the potential of zakat. This research will be organization of non-profit taking to run its
useful for academicians, practitioners, and mission, that is why the term fundraising
governments. For academicians, this research should be changed into fund development.
can be reference for developing model of poor Fundraising is asking money because the need
society empowerment through zakat. In the is so great, while fund development is creative
perspective of Zakat Executor Institution constituency, which supports the organization
(LAZ), as the executors of zakat collection and because it deserves it. It means developing
distribution activity, this research gives de- what I call a membership that participates
scription on the effective poor society empow- through giving to (Drucker, 1993: 41-42).
erment. For the government, this research is For LAZ, building donor constituency
expected to be inputs in passing down eco- actually is not a difficult matter, because all
nomic policy and poor society empowerment. the Muslim society, who is able to pay zakat
must distribute their zakat. Nevertheless, the
LITERATURE REVIEW efforts of LAZ are to motivate them to distrib-
Zakat Collection ute their zakat through LAZ, not directly to the
beneficiaries/mustahik without guidance and
The research of Hayati (2002) puts the za-
empowerment. Therefore, the collection of
kat distributors (Muzakki) and the beneficiar-
zakat fund needs the government’s involve-
ies (Mustahik) on equal position as party
ment in promoting the awareness of distribut-
served by LAZ or as they call “LAZ custom-
ing zakat to LAZ, and if necessary in settling a
ers”. The zakat distributors (muzakkis) in this
regulation. This is important for the govern-
case, requires LAZ to distribute ZIS fund so
ment itself, because the potentials of zakat that
that the distribution can be managed well and
can reduce the government’s budget in the
allocated appropriately and the beneficiaries
aspect of poor society empowerment (Hayati
(mustahik) also requires LAZ to get their
& Caniago, 2011).
rights from the ZIS fund. In this case, no party
more prioritized to get the service, because The research result of Samad & Glenn
both of them have important position. Besides, (2010) shows that zakat in Islam is also be-
LAZ must remind the zakat givers of their lieved by Christians and Jewish, that they call
obligation (to pay zakat) as the application of poor people’s right, with different application
the verse stated in QS 9:103, then it also must based on the comprehension of Islam in soci-
distribute zakat to the right beneficiaries ety and dominating religion in the govern-
(mustahik) as the application of Quran (Quran, ment. According to Prayitno (2008), the gov-
9:160). ernment’s involvement is required to manage
zakat because zakat management is public law
According to Drucker (1993:39), non-
action, which the authority and the responsi-
profit institutions not only serve as service
bility of the government or any government-
provider but also make end user as doer not
legalized institution. Although Indonesia is not
user. The service also used to change the hu-
an Islamic government, with the large amount
man’s life condition. The non-profit organiza-
of Muslim society, it deserves to inseminate
tion requires fund to run its institution. Most
great attention on the matters of zakat. In
executives of the non-profit institution see that
context of a just social policy, its role and that
their problems will be solved with fund. Con-
of society are not in paradoxical position but
sequently, concentration of fundraising will
in two equal, synergistic positions (Susetyo,
result in the shift of their mission. The thought
2012 Hayati & Caniago 177

2008). This way, the first proposition in this vance with the poor society aid program, it is
research is as follows; more of bottom-up than top-down approach.
Proposition 1: Optimizing the collection of Solihin (2010) stated in general, develop-
zakat requires synergistic role ment is categorized into three major concepts,
of LAZ/BAZIS, government, namely: the concept of from-above develop-
and society. ment, the concept of from-below development,
and the concept of community-based devel-
Poor Society Empowerment opment. The from-above development turns
out to enlarge the opportunity of disparity re-
Darwanto (2010) stated that empower- sulting from the absorbance of hinterland re-
ment refers to the definition of the widening source by the central government.
freedom to choose and to act. For a poor soci-
According Cooksey & Kilkula (2005), the
ety, this freedom is very restricted because of
top-down approach in planning cycle has been
their voicelessness and powerlessness in rele-
long carried out almost throughout the world.
vance with government and market. Because
This approach has become cases either on the
poverty is multi-dimensional, poor society
government or the donator’s funding
needs the capability on individual level (like
programs. Generally, one of the main reasons
health, education, and housing) and on collec-
to use this approach is because the fund utili-
tive level (like doing something together to
zation can be implemented fast in large scale
solve a problem). Empowering poor and re-
in line with the planned schedule. This ap-
tarded society demands efforts on abolishment
proach also gives opportunity to the planner of
of the causes of powerlessness to elevate their
the government, the donators and the bureau-
life quality.
crats to deviate its control and efficiency. The
Based on Law of the Republic of Indone- top-down approach is a subordinate of techni-
sia No 13, 2011 about the overcoming of cian’s work that is inclined to use a technical
poverty, on Act 2 it is mentioned that the over- problem-solving.
coming of poverty should be based on human-
ity, social justice, non-discrimination, pros- The bottom-up development is conceptu-
perity, friendship and empowerment. What is ally quite strong, because a small region man-
meant by “empowerment” base is that the ages resources independently and being disin-
overcoming of poverty must be done through tegrated from other regions, which allows a
the enhancement of human resource’ capabil- local region to develop by itself. Somehow,
ity and capacity to elevate the self-depend- the ever less-restricted world economy tends
ence. to show a trend of utopias of the offered con-
cepts (2010).
Empowerment according to Luttrell et al.
According to Solihin (2010), the concept
(2009) is a process and also outcome. The
of Community-Based Development (CBD),
stress on the process is a focus on the eleva-
which is carried out as maximally as possible
tion of capacity of organization or the eleva-
to activate the society’s participation and relies
tion of group participation, which was previ-
upon the local resources, is a development
ously excluded in designs, management and
concept alternative that deserves considera-
evaluation of the development activity,
tion. The implementation of this concept has
whereas, the stress on the outcome is a focus
been increasingly more necessary for the na-
on the economic growth and the promotion of
tional development since the implementation
accessing economic resources.
of UU No. 22, 1999 and No. 32, 2004 regard-
Empowerment is an effort to empower ing Local Government and UU No. 25, 1999
poor society with its own efforts. So, in rele-
178 Journal of Indonesian Economy and Business May

regarding Financial Equilibrium between the cording to A. Qodri Azizy (Sartika, 2008),
Local and Central Government. This concept zakat should not only be consumptive, ideally,
is appropriately applied on the rural regions, zakat can be transformed into the Ummah’s
because the rural image of the developing fund resources. The utilization of zakat for
countries, including Indonesia is identical to consumptive purposes is on allowed in emer-
naturally-based human activities, in relevance gency cases. It means that possibly some bene-
with the poverty and the retards of various ficiaries are not anymore able to be given
aspects. Traditional society, as stated by Dark- guidance for his/her entrepreneurship (like the
heim is characterized by agricultural life, sim- poor and the needy) or for urgent need, con-
ple way of life, homogeneous norms, and the sumptive purposes can be allowed. Ridwan (in
limited job division/specialization. Sartika, 2008) stated the utilization of zakat
According to Pawitro (2007), the should have positive impact to the beneficiar-
approach of CBD is a development process ies (mustahik) either economically or socially.
approach, especially in the field of housing, In the perspective of economy, beneficiaries
residence, and city infrastructure in which not are truly demanded to self-suffice and live
only physical-material and financial aspects decently, whereas in social perspective, they
are involved, but also more spacious aspects, are demanded to live equally with other soci-
like: from Social, cultural, economic aspects to ety groups. This means that zakat should not
the regulation of ecology and environment only be distributed for consumptive purposes
management. (CBD has been world widely but also functions more like charity for more
introduced since around 1976). The productive, and educative interest. Based on
characteristic of CBD is a development the elaboration above, the proposition for this
process, starting from the idea, planning, research is formulated as the following:
making programs of activity, budgeting, and Proposition 2: Program of poor society em-
the provision of sources all the way to the powerment through productive
implementation on the field, which gives zakat by LAZ can be imple-
stronger stress on the intention or the real mented using Community
existing necessity (the real needs of Based Development concept
community) in their society group.
This CBD approach gives stronger em- The Role of Zakat in Empowering Poor
phasis on the intention and the real existing Society
necessity of a society group, thus this
The research result done by Sartika (2008)
approach is characterized by the bottom-up
shows that there is a significant influence be-
approach. The strong points of this CBD
tween the amount of fund distributed and the
approach are among others: more aspiring and
beneficiary’s earning. It means that the
accommodative toward the intention and the
amount of the distributed zakat truly influence
necessity of the society group, able to elevate
the beneficiary’s earning. The research of Beik
motivations and the participation of the society
(2009) shows that zakat can reduce the amount
group because the types of intention or neces-
of poor family from 84 percent to 74 percent.
sity planned really comes from them, the soci-
Then from the aspect of poverty depth, zakat
ety group feels more appreciated, (being lis-
is also proven to be able to reduce the gaps of
tened more and being given more attention)
poverty and income, which is indicated by the
that finally will promote their sense of be-
decrease of the value of poverty gap ratio (P1)
longing to the programs of activity planned.
from Rp540.657,01 into Rp410.337,06 and the
The empowerment of poor society by value of income gap ratio (I) from 0,43 into
LAZ can be carried out through CBD. Ac- 0,33. While if seen from the perspective of the
2012 Hayati & Caniago 179

level of poverty aggravation, zakat is also able third proposition of this research is as the fol-
to reduce the level poverty aggravation, which lowing:
is marked with the decrease of Sen Index (P2)
value from 0,46 into 0,33 and FGT index Proposition 3: Zakat distribution in effort of
value (Foster, Greer, & Thorbecke) from 0,19 empowering poor society ne-
into 0,11. cessitates the synergistic pro-
grams between LAZ’s poor so-
Laila (2010) stated that almost 40 percent ciety empowerment program
or more from 150 million Bangladesh citizens and the government’s poverty
live with the income below USD 1 a day. alleviation program.
More than 70 percent of their income is used
to eat. The level of population density in Zakat Executor Institution (LAZ) Organiza-
Bangladesh goes over 1200 people per kilo- tion
meter, with a small land in average. The fund
of zakat can be distributed through the Minis- All organizations require a form of or-
try of Agriculture to help farmers with the ganizational structure to apply and manage the
promotion of plantation diversity, plantation formulated strategy. Organizational structure
rotation, and with the support of human re- determines the relation of company’s formal
source and irrigation. The Ministry of Agri- report, authority controlling and decision
culture also can offer trainings for farmers to making procedure (Hitt et al. 2010). Hill &
make good use of such resources in effort of Jones (2012: 234-238), divide some types of
producing optimum output, provide rice bran organizational structure. Matrix structure is
facility and create market access. based on two horizontal differences and is not
like a functional structure. Its form on vertical
Ahmed (2004) stated that zakat plays role
line classified as function with quite familiar
in macroeconomic policy, namely, in the
tasks, like selling and marketing, research and
growth of income, and the opportunity of re-
development, etc. While on the horizontal line,
duction of poverty level. This research result
it is differentiated between project and prod-
shows, although the macroeconomic policy
uct. This structure, despite flat, allows the
plays an important role in reducing the level of
employees to have two leaders (two-boss em-
poverty, the poverty cannot be reduced with-
ployee), which is led by project manager and
out a properly administered of zakat. This
functional manager, who are responsible of
research suggests that First, zakat has to be
managing coordination and communication
complimented by robust macroeconomic poli-
between function and project, however this
cies that enhance growth and redistribute
structure has a quite high bureaucracy.
income to eliminate poverty. Second, while
more zakat has to be collected and disbursed, Product-team structure is the same as ma-
the impact on poverty will only be significant trix structure but its form is easier and less
when a larger percentage of zakat proceeds are costly because its participants organized in the
used for productive purposes. The importance form of cross-functional team. In this struc-
on zakat as an instrument to overcome poverty ture, like matrix structure, tasks divided into
necessitates the need to integrate the system of project/project line to reduce the cost of bu-
belief with the development strategy. As as- reaucracy, to promote the management capa-
serted by Susetyo (2008) in context of a just bility, to monitor and control the manufactur-
social policy, the roles of citizens and the gov- ing process. Despite being characterized as
ernment are not in paradoxical position but temporary on two different projects, as matrix
instead, in a synergistic position. Hence, the structure, experts are positioned permanently
180 Journal of Indonesian Economy and Business May

in the cross-functional team so that the cost is a special utility application to support the
will be lower. decision-making and Executives Support
Geographic structure, this structure oper- Model is a model done by seniors to manage
ated by companies in which geographical area high-levelled organization problems (Amsyah,
becomes the basis of organizational activities 2005:326).
classification. The company divides its manu- Zakat Executor Institution as a mediating
facture operation and develop them in differ- institution between the abundant fund owner
ent area, so that it can be responsive to each parties/donators (muzakki) to the beneficiaries
customer’s necessity and it can reduce its (mustahik) certainly requires much a reliable
transportation cost. As an example, banking information management, from the donator
service organization that regulates the selling (muzakki) data collecting to obtain information
and marketing activity in an area, rather than of zakat potentials, the beneficiary data col-
nationally on the purpose of intimating the lecting to obtain data and map of the benefici-
customers. aries. Information that required in the level of
If a company wants to be successful, it LAZ management to the information publi-
must adjust its strategy, structure and control cised. So LAZ can require several types of
because the different strategy is required along information system, like: Management Infor-
with environment demand and organizational mation System, Accounting Information Sys-
demand. Therefore, it requires different struc- tem, Inter-organizational Information System,
tural response and control system (Hill & including Geographical Information System.
Jones, 2012:11). Hence, the fourth proposition The better organization knows the geography
of this research is as follows: of the donators, it can learn more effectively
and efficiently in raising fund (Esri, 2002).
Proposition 4: The most appropriate organiza- Based on the above elaboration, the next
tional structure for LAZ is proposition of this research as follows:
Geographic structure.
Proposition 5: The management of zakat col-
Information System of Zakat Executor lection and distribution depends
Institution much on the reliable infor-
mation system.
Information system is a human or me-
chanical system that provides information to
support the management operation and the RESEARCH METHOD
function of decision making of an organization This research applies a case study. A case
(Gordon B. Davis in Jogiyanto, 2005). Or- study is an intensive study on single unit or a
ganization requires instrument that provides number of small units (case) on the purpose of
the required information or called as Manage- comprehending a bigger class from similar
ment Information System (MIS). MIS is a units (population and case) (Gerring,
computer-based system that makes the infor- 2007:37). Case is a limited entity. Case serves
mation available for the users with similar as a major unit of analysis in case study.
necessity (McLeod & Schell, 2008). Meanwhile, case study can also have unit in
Some of the basic information model is major unit (Yin, 2012:6-7). A case study as a
Transaction Management Model (MPT) that qualitative research or also called as empirical
supports the daily operational activity of the inquiry is defined by Yin (2003:13-14) as: a)
organization. Management Support Model observation on phenomena in contest of real
(MPM) is used to help manager execute his life, especially when b) boundaries between
daily activity. Decision Support Model (MPK) phenomena and context is not obviously seen,
2012 Hayati & Caniago 181

and where; c) multi-source proof is made tion courses, like triangulation process. This
use/utilized. research multi-source of evidence is as fol-
lows: a) Documentation; supplement of zakat
Propositions implementation guide, program brochures,
Propositions of this research as revealed in poor society empowerment program, govern-
bibliography overview are as follows: ment’s poverty alleviation programs etc b) File
records; an organization notes, organization
Proposition 1: The optimization of zakat col- diagram, work programs, etc. c) Interviews;
lection requires synergistic role the key informants in focused interview are
of LAZ/BAZIZ, government people in the organizational structure like the
and society. chief of LAZ/BAZIS or department chief.
Open-ended interview is also done to the chief
Proposition 2: Program of poor society em- of LAZ/BAZIS in Lampung Province to com-
powerment through productive plement or to triangulate the focused inter-
zakat by LAZ can be imple- views. This interview is also done to the do-
mented using Community nators (muzakki) and the beneficiaries (musta-
Based Development concept hik). Other than that, indirect interview is also
Proposition 3: The distribution of zakat in ef- done through internet to those institution par-
fort of empowering poor soci- ticipants who have relation with zakat man-
ety requires synergistic pro- agement. d) Direct observation on the data
grams by LAZ with the gov- required in observing the work pattern of
ernment’s poverty alleviation LAZ/BAZIS in Lampung province, e) partici-
programs. pant observation is done through the active
participation of role-play, for example direct
Proposition 4: The most appropriate organiza- involvement of zakat collection and distribu-
tional structure for LAZ is tion.
Geographic structure.
Data Analysis Technique and Report
Proposition 5: The management of zakat col-
lection and distribution depends The data analysis technique in this re-
much on a reliable information search correlates data with propositions
system. (Baxter & Jack, 2008), whereas the report uses
Linear Analytic Structure, which is a standard
Choosing Case approach in writing research report. This
structure involves issues or problems being
A case study consists of two types; single observed, methods used, findings from the
case and multiple cases. This research uses data collected analyzed, decision making and
single case, namely observation on zakat man- implications of the findings (Yin, 2003).
agement in Lampung province.
DISCUSSION
Data Source
The First Proposition; The Optimization of
This research data source comes from Zakat Collection Requires Synergistic Roles
multi-source of evidence. Yin (2012) stated of LAZ/BAZIS, Government and Society
that multi-source of evidence in a case study
could position investigators in the spectrum of The role of LAZ/BAZIS and government
issues of history, attitude, and behavior. The of Lampung so far has not been synergistic.
advantage of this is the cross point of observa- This is obviously seen from the less serious-
ness of Lampung government in its involve-
182 Journal of Indonesian Economy and Business May

ment of zakat management. The zakat collec- in Indonesia in their awareness to pay zakat is
tion for Bandar Lampung area alone, for ex- determining. The motivation of zakat is de-
ample, is only 0.0024 percent of PDRB of termined among others by the government’s
Bandar Lampung (Hayati & Caniago, 2011). role and their knowledge on zakat (either the
The role of the government in this case is jurisprudence or the benefits of zakat) (Hayati
giving support to the collection of zakat. & Sari 2007). Thus, the efforts to promote the
Fahmi (2010) (in Hayati & Caniago, 2011) society’s understanding on zakat should be
stated that Baitul Mal of Aceh (BMA) has persistently done.
been given authority through Act 10 Qanun The role of LAZ/BAZIS is to promote
No. 10, 2007 to collect zakat either from the their professional capability in zakat manage-
government institution, central or local, ment. The better the zakat management is, the
BUMN, BUMD, Private companies, and in- better achievement the poor society empow-
come zakat for civil servants, BUMN employ- erment will reach. The empowerment of the
ees, POLRI, TNI, or the parliaments, etc. But beneficiaries (mustahik) depends on the col-
the challenge that Baitul Mal of Aceh (BMA) lection of ZIS fund. The collection of ZIS will
faces is the ability to collect zakat from the hardly reach optimum result if LAZ/BAZIS
Muzakki (donators). So far, the role BMA is does not give a qualified service in empower-
only to collect or to receive without authority ing the beneficiaries (mustahik) (Hayati,
to enforce the Muzakki (obliged donators). 2002).
Thus, the regulation role in this case does not Picture 1 shows the synergistic interac-
merely give authority to LAZ/BAZIS to col- tions between the government, LAZ/BAZIS
lect zakat but also to enforce the obligation of and common society, which will give the first
zakat as much as that of taxes. hypothesis to this research. Government in this
The role of Muslim society itself is deter- case is a party that give support to the collec-
mining much the success of zakat collection. tion of zakat by making regulation to enforce
As a plural country that is not based on obligation of zakat for rich (obliged) Muslim
Islamic foundation, the role of Muslim society society.

Regulation of GOVERNMENT
Zakat
Collection

MUSTAHIK/
MUZAKKI/ BENEFICIARIES
donators
 individual
 company/ Independent
institution LAZ/
BAZIS

Picture 1. The Synergistic Model of LAZ/BAZIS, Government and Muslim Society


2012 Hayati & Caniago 183

The role of LAZ as a professional institu- focus is given to the economic empowerment
tion that works on the empowerment of poor for the beneficiaries (mustahik) only (table 1).
society should be done by independent institu- Table 1 shows programs in the economic
tion/boards. LAZ requires trust from Muslim fields carried out by each LAZ. The execution
society. It does not matter how much zakat is of the program involves the beneficiaries di-
obliged, the optimization of zakat collection rectly giving focus on the beneficiaries’
will not be realized, if Muslim society does (mustahik) real expectation and necessities.
not trust the Zakat Executor Institutions LAZ accommodates their aspiration, expecta-
(BAZ/BAZIS). tion and necessities, tries to be more respon-
sive to the existing dynamics/development in
The Second Proposition; The Program of its social groups in an effort of motivating the
Poor Society Empowerment through role of the beneficiaries, thus it will create a
Productive Zakat by LAZ Can Be sense of belonging on every planned program
Implemented Using Community Based of activities. It is important as LAZ programs
Development Concept are aimed at transforming Mustahik (benefici-
LAZ/BAZIS carries out some programs, aries) into a self-sufficient individual and in
among others are education scholarship, entre- turn, into a muzakki (donators). Therefore,
preneurship trainings, medical help, disaster supervision on the training process is impor-
aids, and the economic empowerment for tant to carry out. Thus, it can be seen that
beneficiaries (mustahik). In this discussion, the Community-Based Development is a feasible
method that can be done by LAZ.

Table 1. The Program of Poor Society Empowerment by LAZ/BAZIS


LAZ DAI DPU DT ZAKAT HOUSE DA’WAH COUNCIL
Economic Program; Center of Independent Senyum Mandiri Empowerment and
1. Society Cart/Gerobak Ummat; 1. Healthy Family Toilet Development of Society
Rakyat (GERAK); the 1. Independent Livestock (TOSKA) by Da’i:
provision of business Village (Livestock Fat 2. Independent Small a. Construction of Sugar
cart. program for empower- Business Credit Cane mill at Bukit
2. AHAD (Business ment of small breeder (KUKMI) Batabuah, Sumatera
Charity Aid); aid for in village). Barat,
3. Cake House
courses and 2. Society Based- b. Construction of water
entrepreneur Microfinance Syariah 4. Entrepreneurship well in Marapi’s slope
(Misykat) Exercise
3. PEKAT c. Education program of
(Empowerment of (benefit receiver of 5. Empowering Center street children
People’s program (mustahik) is 6. Nutrition Alert d. Poverty Solving
Economy/Pember- given roll funding, 7. Water well (water Program through goat
dayaan Ekonomi skill, and entrepre- facility procurement) livestock and poor
Umat), the integrated neurship insight, sav- society assist
management of gar- ing education, poten-
bage, Mosque-based tial excavating, char- e. Empowerment
economic empower- acters and morals con- program of moslem
ment program, UMK struction, so that they community at Nias,
empowerment pro- are empowered and etc.
gram. supported to be more
independent.
Source: Data and interviews of each LAZ
184 Journal of Indonesian Economy and Business May

Table 2. The Program of Poor Society Empowerment by LAZ and Poverty Alleviation Program
by Government based on Policy Orientation through 4 Focused Priorities (RPJMN
2010, 2nd book)
Prioritized Activities (RPJMN 2010)
1. Integrated Social Aid
Integration of family based social security program that include incidental or marginal group Cash Direct Aid (BLT),
hope family program, food aid, health social security, scholarship for poor family’s children, toddler education
(PAUD), and Parenting Education, start at 2010 and expanded to be national program since 2011-2012.
Government’s program LAZ ‘s Program Remark
Education, Development, Funding, and Health Health Aid Program Government’s and LAZ’s program
Security can be synergized
Education subsidy for qualify elementary Scholarship Program Government’s and LAZ’s program
schools can be synergized
Education subsidy for junior high schools Scholarship Program Government’s and LAZ’s program
can be synergized
Rice subsidy for poor people (RASKIN) Consumtive Aid Program Government’s and LAZ’s program
(include zakat fitrah, etc) can be synergized

Prioritized activities
2. PNPM Mandiri:
Budget increasing of PNPM Mandiri, from Rp10.3 trillion in 2009 to Rp12.1 trillion in 2010, compliance of Direct
Aid to Society (BLM) Rp3 billion per sub-district for minimum 30percent poorest sub-district, and selective
integration of supporting PNPM
Government’s program LAZ’s Program Remark
 People empowerment and poverty-unemployment counter Social Aid Program Government’s and LAZ’s
measure acceleration in sub-district (City PNPM) program can be
 People empowerment and poverty-unemployment counter synergized
measure acceleration in sub-district and village (Village
PNPM)
 Poverty counter measure acceleration through infrastructure
and villagers empowerment (RIS PNPM+PPIP, etc

Prioritized activity
3. People Business Credit (KUR):
Improvement of KUR distribution’s mechanism since 2010 and expansion of KUR’s scope since 2011
Government’s program LAZ’s Program Remark
Micro and Small business access to capital source Micro and Small Business Government’s and LAZ’s
Aid Program program can be synergized
Cooperative Institutional Micro and Small Business Government’s and LAZ’s
Aid Program program can be synergized

Prioritized activity
4. Poverty Allevation Team:
Revitalization of National Poverty Allevation Committee (KNPK) under vice president coordination, using unified
database for establishing program’s target since 2009-2010, and application of accurate monitoring and evaluation
system use as decision and budget allocation’s basis
Government’s program LAZ’s Program Remark
Coordination of policy, institution of KNPK, and people LAZ’s Professionalism Government’s and LAZ’s
reinforcement Management program can be
Reinforcement synergized
Source: RPJMN 2010 Book 2 and Compilation of Programs of Zakat Executor Institution (Lembaga Amil Zakat)
2012 Hayati & Caniago 185

The Third Proposition; The Zakat fective, not-well coordinated programs that
Distribution to Empower Poor Society will result in the ineffectiveness of the society
requires Synergistic Empowerment empowerment programs. The similarities can
Programs of LAZ and Government be seen in picture 2. If all the LAZ and gov-
The poor society empowerment programs, ernment programs can work synergistically,
either by LAZ/BAZIS or government come in the poor society empowerment will be better.
varieties. Such programs can be seen on Table
Table 3. Programs of Government Aid
2. In practice, those programs either by
LAZ/BAZIS or the government often work No Types of Government Program
similarly. For example, the scholarship pro- 1. Askeskin
grams which the government has implemented 2. Jamkesmas
such as scholarships like BOS for Schools and 3. Raskin
Bidik Misi (PMPAP) for Universities, are also 4. Cash Direct Aid (BLT)
carried out by LAZ/BAZIS. The government’s 5. School Operational Aid (BOS)
program of Independent National Community 6. PNPM
Empowerment Program (PNPM) is also 7. Students Scholarship (BKM)
sometimes done by LAZ/BAZIS in similar 8. Effort of Increasing Income of
form. For medical aids, the government runs Prosperous Family (UPPKS)
an Askeskin and Jamkesmas (poor society’s 9. Underdeveloped Village Instruction
health insurance), and LAZ also runs similar (IDT)
programs. It all shows overlapping programs 10. Sub-District Development Program
between LAZ and the government, or among (PPK)
the LAZ institutions. 11. Sakinah Family
12. Additional Food Program for
Some government aid programs, which Schoolchildren (PMTAS)
are running can be seen on table 3. Compared 13. People Business Credit (KUR)
with programs carried out by LAZ, they seem
Source: Bangsawan et al. 2010
similar and this allows the widespread inef-

Source: Bangsawan et al. (2010) and Compilation Programs of LAZ


Picture 2. Synergistic Relation Pattern between the Government’s Poverty Alleviation Programs
and the LAZ’s Poor Society Empowerment Programs
186 Journal of Indonesian Economy and Business May

Based on the elaboration above it seems utes it to the same area of its residence shows
very possible that the poverty alleviation pro- a decentralized bureaucracy pattern. If the
gram by the government and the poor society centralized bureaucracy pattern is applied, the
empowerment program by LAZ to work syn- zakat collection and distribution will work
ergistically so they will not overlap. It is nec- rigidly and slowly.
essary that the government and LAZ sit to- The most appropriate LAZ organizational
gether to discuss such programs in order that structure is Geographic structure. Geographi-
the poor society empowerment can work hand cal structure will allow an easy zakat collec-
in hand without overlapping so there will not tion and distribution. LAZ institutions can be
be any abandoned fields to empower. established in every regency/city, so they can
focus on the collection and distribution of za-
The Fourth Proposition; The Most Appro- kat in each local area. However, information
priate Organizational Structure For LAZ Is should be exposed to the central LAZ (Prov-
Geographic Structure. ince). Geographical structure can be seen in
The work pattern of LAZ that collects za- picture 3.
kat from the area of its residence and distrib-

Note:
Bandar Lampung = Provincial LAZ that functions as LAZ of Provincial Capital and Supervisor of
regency/city LAZ
= Information Course of Zakat Collection and Utilization between Regency LAZ and Provincial
LAZ

Picture 3. Geographic Structure LAZ


2012 Hayati & Caniago 187

LAZ structure of regency/city also does makes coordination in order to avoid the inef-
not require zakat collector units of district (ke- fective and overlapping distribution.
camatan), as it only allows enlarging bureauc-
racy and cost. A temporary zakat collection is The Fifth proposition; The Management of
done enough by zakat collecting team. Fur- Zakat Collection and Distribution Depends
thermore, if the government can enforce the on a Reliable Information System
obligation of zakat more seriously, the role of Information system technology is the most
zakat collector will be more easily done. Za- required instrument for LAZ. The collection
kat, nowadays can be transferred either via and utilization of zakat necessitate the trans-
ATM or internet. parency of information. Currently, zakat in-
On the other hand, the aspect of utilization formation system has been available (Simzaki)
deserves a more serious attention. Empower- that can be accessed through website http;//
ment trainings for poor society require atten- www.amil-zakat.net/. This information system
tion and guidance. So the utilization of zakat is is very helpful in the transparency of zakat
not one-end program but rather continuous collection and utilization.
programs. The concept of Community-Based
Other than transparency, LAZ requires In-
Development (CBD) stresses on the direct
formation System Management (MIS) to ob-
participation of society in determining the
tain the required information for its manage-
most accurate program on their behalf, which
ment, from the daily operational activity,
requires continuous attention, counseling and
helping the LAZ manager’s daily activity,
guidance.
including supporting the decision making of
The management of zakat, now has not LAZ leaders. LAZ needs Geographical Infor-
been done by one LAZ. Zakat is also managed mation System (GIS) to mark (image) the za-
by other private LAZ institutions that have kat potential regions and the beneficiary
been founded lately. But it does not mean that (mustahik) region. LAZ also needs Inter-or-
it cannot run the geographical structure. LAZ ganizational Information System that relates
(private) and BAZIS (government’s zakat in- among a LAZ with other LAZ institutions
stitution) can work together, as co-opera- (web-base). It is required to avoid overlapping
tion built by Baitul Mal Aceh (BMA). BMA collection and distribution of zakat. Often, a
divides the authority of its collection and dis- mustahik who has requested one LAZ cannot
tribution with private LAZ, which undeniably be traced on other LAZ institutions. The in-
gives significant effect on the collection of formation system allows LAZ to have accurate
zakat, especially for the muzakki of private data of the mustahik’s (beneficiary) residence
region. Even the amount of zakat collected by and status in its LAZ.
other private LAZ institutions in Lampung
province is bigger that the local BAZIS The Model of Poor Society Empowerment
(Hayati & Caniago, 2011). through Optimizing the Potentials of Zakat
Such division can be done by dividing the Based on the elaboration of optimizing the
target of muzakki. For example, civil servant potentials of zakat, synergistic relation pattern
(PNS) and government institutions muzakki of Poverty Alleviation Program by the Gov-
can distribute their zakat to the local BAZIS. ernment and Poor Society Empowerment by
While individual or private companies LAZ, subsequently can be designed by the
muzakki that is out of the management of BA- Model of Optimizing the Potentials of Zakat
ZIS can be the authority of private LAZ insti- as Instrument of Poor Society Empowerment
tutions. But in the aspect of zakat distribution, (Picture 4).
every private LAZ and BAZIS necessarily
188 Journal of Indonesian Economy and Business May

The government’s role is as the maker of The management of zakat collection and
zakat obligation regulations to individual, distribution by LAZ should be done, using
companies and government institution. Then, geographic organizational structure. This
muzakki (donators) which consists of individ- structure allows the formation of other decen-
ual, companies and government institution, tralized LAZ institutions of regency/city. Be-
distributes their zakat to LAZ/BAZIS. In term sides, the amount of the existing private LAZ
of zakat utilization, the government and LAZ institutions can help in the collection of zakat
should work cooperatively in order that the and in promoting awareness among muzakki of
government’s poverty alleviation program and paying zakat. But in the aspect of utilization,
LAZ’s poor society empowerment program an information system, an efficient and effec-
are supportive rather than overlapping. tive fund collection, a non-overlapping utili-
zation, are required.

GOVERNMENT
Regulation

Synergistic
Zakat Regulation

Program
Poverty Alleviation
Program

MUZAKKI MUSTAHIK/
Individual POOR SOCIETY
Company
Government institution

K L S
Distribution
Collection

K L S
K L S
K L S

K L S K L S
K L S

K L S

K L S
Bandar Lampung

K L S

LAZ/BAZIS
(Province-Regency)

Geographic
Organizational Structure
Support of Information
System

Picture 4. Model of Poor Society Empowerment through Optimizing the Potentials of Zakat
2012 Hayati & Caniago 189

CONCLUSION AND SUGGESTION ernment should start to give a serious at-


The result of this research can be concluded as tention in enforcing obligation of zakat
follows: through regulation. So that the collection of
zakat can be done well.
1. The synergy in zakat collection among
2. Government should invite LAZ/BAZIS to
LAZ/BAZIS, Lampung province govern-
sit together to discuss the program of poor
ment and society is required in the effort of
society empowerment in order to avoid
optimizing the collection of zakat. The role
overlapping and some neglected aspects.
of government in making regulation is de-
termining the optimization of zakat collec- 3. Private LAZ and the government’s BAZIS
tion. should begin discussing about the effective
and efficient management of LAZ, and
2. The Program of poor society empowerment
running geographic structure.
through productive zakat by LAZ in Lam-
pung province can be done through Com- 4. LAZ/BAZIS should start to develop infor-
munity-Based Development (CBD). It al- mation system that can support the work to
lows the direct participation of society in be better.
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