An Analysis on the Changing Operational Nature of Baitul Maal Institutions in Indonesia

Adi Saifurrahman, Salina Kassim

2019

Abstract

Baitul Maal is deemed as a vital financial institution in the past, apart from its role as the state’s treasury in managing all types of revenues and expenditures that the Islamic State had. Previously, Baitul Maal served as the assurance body to ensure public security and preserve the welfare of the public. Due to this important function, the modern Muslim civilisation, especially in Indonesia, once more intended to establish an identical institution and have the aspiration to replicate the past function of Baitul Maal. When this research is conducted, the main purpose of this research is to compare the role and function of the past Baitul Maal with the role and function of present Baitul Maal in Indonesia, identify and analyze the similarities and differences between the two generations, whether the present Baitul Maal truly reflects the role and function of the past Baitul Maal, or it is just merely a name? The result of this research implies that there are several similarities and differences between the two institutions. The similar aspect between the two generations is in the aspect of concept and philosophy of Baitul Maal. Subsequently, the different aspect between the two institutions is in the aspect of the definition, source of wealth or revenues, expenditures, and organisational structure. In general, the past Baitul Maal serves as the state’s treasury, while the present Baitul Maal serves as the charitable body. Due to this different characteristic between the two institutions, the past Baitul Maal has a wider type of revenues to be managed and larger type of expenditures to be spent, whilst current Baitul Maal is limited to the sadaqah types fund only that consist of Zakat, Infaq, Sadaqah, and Waqf. Thus, explicitly, its expenditures are also limited and only can be spent on the beneficiaries and the needy.

Paper Citation

in Harvard Style

Saifurrahman A. and Kassim S. (2019). An Analysis on the Changing Operational Nature of Baitul Maal Institutions in Indonesia. In Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF, ISBN 978-989-758-473-2, pages 127-135. DOI: 10.5220/0010115800002898

in Bibtex Style

@conference{7th aicif19,
author={Adi Saifurrahman and Salina Kassim},
title={An Analysis on the Changing Operational Nature of Baitul Maal Institutions in Indonesia},
booktitle={Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF,},
year={2019},
pages={127-135},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0010115800002898},
isbn={978-989-758-473-2},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 7th ASEAN Universities International Conference on Islamic Finance - Volume 1: 7th AICIF,
TI - An Analysis on the Changing Operational Nature of Baitul Maal Institutions in Indonesia
SN - 978-989-758-473-2
AU - Saifurrahman A.
AU - Kassim S.
PY - 2019
SP - 127
EP - 135
DO - 10.5220/0010115800002898