International Journal of Zakat <p style="text-align: justify;">International Journal of Zakat (IJAZ) focuses on zakat studies such as general activities of zakat management, institutional foundation, zakat administers qualifications, good governance practices, assessment methodology and other areas related to zakat. General activities of zakat management covers discourses about&nbsp;zakatable&nbsp;wealth, methods of collection and performance indicator; Institutional foundation includes private sector, special department, government on mandatory basis enforced by the regulation and credibility of the institutions; Zakat administers qualifications comprises sharia and professionalism principles and trust of zakat payers; On the other hand, good governance practices covers internal/external reporting system and risk management.</p> <p style="text-align: justify;">International Journal of Zakat (IJAZ) mainly publishes articles using quantitative data, however, this journal also welcomes articles written in the qualitative approach. Contributions are welcome from across disciplines, including economics, history, law, finance, psychology, sociology and various studies related to zakat. By bringing these studies, IJAZ makes an effort to examine that the development of zakat would give an alternative contribution to the poverty alleviation and improve social welfare.</p> en-US (Center of Strategic Studies, BAZNAS) (Sekretariat) Sat, 25 Nov 2017 00:00:00 +0700 OJS 60 Role of Zakat in Sustainable Development Goals <p>In this paper, we explore the potential of the institution of Zakāt to meet the development challenges, especially in the Muslim world. We discuss the interlinkages between the institution of Zakāt and Maqasid-al-Shari’ah. We also discuss the economic potential and effects of Zakāt by reviewing theoretical and empirical studies. Finally, we also provide our analysis which suggests that Zakāt can play an important role in meeting sustainable development goals related to poverty, hunger, global health and well-being, quality education, decent work and economic growth and income inequality.</p> <p><br>Keywords: Zakāt, Sustainable Development Goals, Poverty, Inequality<br>JEL Classification Code: E6, H2, H3</p> Salman Ahmed Shaikh, Abdul Ghafar Ismail ##submission.copyrightStatement## Sat, 25 Nov 2017 00:00:00 +0700 The Comparison between Consumption and Production-based Zakat Distribution Programs for Poverty Alleviation and Income Inequality Reduction <p>This study attempts to analyze the effect of consumption and production-based zakat distribution programs in eradicating poverty and reducing income inequality of the zakat beneficiaries by using the modification of the Center of Islamic Business and Economic Studies (abbreviated as CIBEST) model, Deciles method, Gini coefficient and Atkinson index. It takes the case study of 1,309 zakat beneficiaries managed by the National Zakat Board of Indonesia (abbreviated as BAZNAS) in three different cities and regencies including Bogor, Depok and Sukabumi. It suggests that the present zakat distribution programs conducted by BAZNAS can significantly alleviate poverty and reduce income inequality among zakat beneficiaries. It is observed that one year after receiving zakat programs, production-based programs have higher increase of the material and spiritual condition (represented by falah index) by 300 percentage points while households who obtained consumption-based programs rise by only 20 percentage points. It is also found that the Gini coefficient decreases by 0.017 points while Atkinson index falls by 0.042 points indicating that the income inequality among observed zakat beneficiaries are improved. This study has substantiated the role of zakat for poverty alleviation and income inequality reduction that can benefit development in general.</p> <p>Keywords: Zakat Distribution Programs, Poverty, Income Inequality</p> Qurroh Ayuniyyah, Ataul Huq Pramanik, Norma Md Saad, Muhammad Irwan Ariffin ##submission.copyrightStatement## Sat, 25 Nov 2017 00:00:00 +0700 A Study Comperative: the Perception of Coastal Communities in Developing the Method of Distribution of Marine Zakat <p>Indonesia as one of the largest maritime countries in the world that has enormous potential. The one of potential can be found at fishery resources reaching 6.4 million tons per year with the number of catch fisheries reaching more than USD 15 billion. Thus the total foreign exchange of marine and fishery reaches USD 71 million per year. But the facts, 83 percent of coastal communities are still living in poverty. To overcome these problems, it is necessary to optimize zakat, because in reality the implementation of zakat (in this case is marine zakat) is not optimal. This study is aimed to identify and develop the distribution model of marine zakat based on local people’s perception. In analyzing this research, the authors applied qualitative method through comparative study approach by using data collecting technique in the form of deep interviews. The object of this research is the people who live in Depok and Gunungkidul beach, Yogyakarta. Through this research, the authors hope the community can identify the development of the distribution model of marine zakat that can empower coastal communities and can motivate local people to be more productive and optimize the existence of this zakat.</p> <p>Keywords: Islamic Economics Marine Zakat, Empowerment Coastal Community, Maritime</p> Diki S Riwanto ##submission.copyrightStatement## Sat, 25 Nov 2017 00:00:00 +0700 Zakat as an Obligatory System and its Implications for Social Psychology of Society (Social Tafsīr of Sūrah Al-Tawbah: 103) <p>In the current literature, the study of the collective benefits of Zakat is more emphasized on the material economic aspects by using modern economic tools. Meanwhile, Zakat has a significant social role in the community. Therefore, Allah mentions in Qur'an the command of Zakat and prayer together as much as 22 times. It shows that the role of Zakat socially in human relationships with each other is comparable to the relationship with God. This paper will try to explore and analyze the social role (Social Psychology) of Zakat as an obligatory system from Sūrah al-Tawbah: 103. The method used in this paper is a qualitative method by using content analysis that combines tafsīr bi al-ra’yi with tafsīr bi al-ma’thūr. By using social tafsīr, it is found that Zakat should be an obligatory system and its management must be done centrally by the government. BAZNAS can be a representation of the government to perform the task. Then, it will result in the creation of equal degree and status between mustahiq and muzakki. Meanwhile, the implication of Zakat in the context of social interaction of the society is the creation of tranquility, security, and harmony for the whole society.</p> <p>Keywords: Zakat, Social Tafsīr, Social Psychology</p> Abdul Wahid Al-Faizin, Taqiyah Dinda Insani, Tika Widiastuti ##submission.copyrightStatement## Sat, 25 Nov 2017 00:00:00 +0700 Role of Zakat as Social Finance Catalyst to Islamic Banking and Economic Growth <p>This paper is aimed to assess the contribution of Zakat in boosting Islamic banks’ financing and economic growth for the period 2011-2015, in 10 district/city of West Java Province, Indonesia. Through Vector Autoregressive (VAR) panel co-integration analysis, variance decompositions (VD) and impulse response functions (IRF), this study investigates Zakat, Islamic Banking, and economic growth nexus. Findings in this research highlight that Zakat has a significant impact on Islamic banking, so this institution would contribute to economic growth both in the short and the long run, with fluctuation in variance from the first year. The results lend support to the view that Zakat not only leads to social benefits but also has a positive impact on the economy through increasing Islamic banks’ financing. Therefore, this research will serve as a motivation for the industry players and regulators to continuously promote Zakat as a strategic policy. The originality of this research is to assess Zakat-led growth and finance by analyzing the impact of Zakat on the Islamic banking and regional economic outcome. Another novel aspect of this study is in the methodology as it employs VAR panel co-integration analysis, VDs and IRFs on the set of annual data.</p> <p>Keywords: Zakat, Islamic Banking Financing, Economic Growth, West Java</p> Ai Nur Bayinah ##submission.copyrightStatement## Sat, 25 Nov 2017 00:00:00 +0700 Optimization of BAZNAS Programs on Sustainable Development Goals (SDGs): Analytic Network Process Approach (ANP) <p>With the release of the United Nations (UN) Sustainable Development Goals (SDGs) program, the Government of Indonesia (BAPPENAS) is committed to realizing Sustainable Development Goals (SDG) in Indonesia. The essence of the spirit of Islam in solving poverty is the inclusive nature that must be attached to the development of Islamic finance and related to issues of poverty alleviation as a basic responsibility in achieving the goals of Shari’ah (al maqashid Shari’ah). In realizing Sustainable Development Goals (SDGs), it will require Zakat Organizational Programs. The purpose of this study is to measure the priority scale of the 7 Grand Programs of BAZNAS on 17 Goals of Sustainable Development Goals (SDGs). This research uses Analytical Network Process (ANP) method, wherein the process performs pairwise comparison and uses super matrix calculations to measure the interrelationship between the elements. The results of the measurements by Analytical Network Process (ANP) and statistics show some of the priority conclusions which include Pillars of Environmental Development (W= 0.47783), Partnership for All Development Objectives (W= 0.00486) and Zakat Community Development (W=0.07367).</p> <p>Keywords: Zakat Program, Sustainable Development Goals, Optimization, Development</p> Mohamad Handi Khalifah, Mohammad Soleh Nurzaman, Muhammad Cholil Nafis ##submission.copyrightStatement## Sat, 25 Nov 2017 00:00:00 +0700 The Implementation Strategies of Good Corporate Governance for Zakat Institutions in Indonesia <p>Zakat institutions are aimed to contribute to poverty alleviation in a country. In order to ensure that the Zakat institutions can perform well, it is urgently needed to have professional good governance. This research is aimed to find the best strategies to improve the management quality of the Zakat institutions in Indonesia. The research method used in this study comprises both qualitative and quantitative approach using Analytic Network Process. The research results show that to enhance the quality of good governance in Zakat institutions, following are the key elements. The top three main priorities in transparency principles are financial report standardization, followed by Zakat distributions transparency, and the knowledge about decision making. The top three main priorities in responsibilities principles are working compliance with SOPs, followed by prudential principles, and Shari'ah compliance. The top three main priorities in accountability principles are the effectiveness of internal control, followed by performance measurement, and competencies compliance with job descriptions. The top three main priorities in fairness principles are giving priority to the common interest, followed by equal treatment for all stakeholders, and prudential principles in asset management. To achieve all these priorities, the main strategy which should be prioritized is independent human management system, followed by having Shari’ah board and audit committee and the computerized Zakat system.</p> <p>Keywords: Zakat institutions, Good Governance, Analytic Network Process <br>JEL Classification: L31, G34</p> Irman Firmansyah, Abrista Devi ##submission.copyrightStatement## Sat, 25 Nov 2017 00:00:00 +0700