Social Capital of Lembaga Amil Zakat (LAZ) in West Java
Moh Dulkiah, Aep Saepuloh, Dadan Nurulhaq, Juhaya S. Praja and Oyo Sunaryo Mukhlas
UIN Sunan Gunung Djati Bandung, jl. AH. Nasution 105 Bandung, Indonesia
Keywords: Social Capital, Transformation, Institutionalism.
Abstract: The article studies social capital of Lembaga Amil Zakat (LAZ) in West Java. The methodology of this
study is qualitative. Theoretical framework of this study is integration between theory of capital from Pierre
Bourdieu and new institution from Victor Nee. The exercise field of this study is LAZ in west Java,
especially Dompet Dhuafa, Rumah Zakat, Dompet Peduli Umat Daarutauhid, and Pusat Zakat Umat. This
study finds that social capital would be main key of LAZ for success maintaining and developing its
existence and does transformation to other. Quantity and Quality of social capital decide opportunity for
success and reward (trust) which is received. In other side, the form of institutional relation on level of LAZ
organization (mezzo) in social, politic and economic action is mutual effect. Transformation of zakat
governance based on good governance will impact on social transformation, especially changing from
receiver (mustahiq) became giver (muzakki).
1 INTRODUCTION
This study focuses on analyzing the transformation
of zakat (alms) management from the viewpoint of
the social capital and its institutional relation. Deep
study regarding this topic has its relevance to enrich
theoretical discussions in economic sociology on the
types and function of the social capital in an
institution. Even though this study merely reveals
the types and function of the social capital in the
Zakat Management Institution (Lembaga Amil
Zakat, LAZ).
The existing perspectives on social capital
(Putnam, 1993; Coleman, 1998; Portes, 2010;
Fukuyama, 2000) focus on the form of interrelated
qualities between the community, organization, and
the society based on trust, norms, and social
networking. Other perspectives view the phenomena
of the social capital could be differentiated into
financial capital, physical capital, human capital, and
symbolic capital with which the capital is not merely
involved in the material exchanges (Coleman, 1998;
Bourdieu, 1986).
The explanation by interactive perspectives
could be known by the researches of Putnam (1993),
Rothstein and Stolle (2003) (in Rothstein and
Uslaner, 2005). In these perspectives, social capital
emphasizes more to the trust and networking. It is
known that those who have trusts, have also better
activities in political and governmental institutions,
they are also more welfare and they are hardly
involved in the crimes and corruption.
Regarding the organizer of zakat, the previous
researches reveal that there are 3 (three) kinds of
zakat institutions leading in Indonesia. Firstly, the
institutions managed by the community stressing
more to the ascetism and altruism. Secondly, the
institutions managed by the state stressing more to
the development orientation. Thirdly, private LAZ
attempting to apply the principle of maximizing
utility.
This study emphasizes more on social capital of
LAZ in transforming the management of zakat in
West Java, Indonesia. Studying the reality of zakat
in West Java has its own attraction, especially
because there are prolific growing private zakat
institutions in the area. Moreover, West Java is one
of the most populated area, so that it could
accumulate and maximize the capital (Minarti, et al.,
2012: 27). Therefore, a research on the capital and
its relation to institutionalizing zakat management is
significant to be done intensively.
The aim of the research is to know the types of
social capital and its transformation. The main thesis
of the research is that social capital could be a main
key of success in a socio-economic institution in
Dulkiah, M., Saepuloh, A., Nurulhaq, D., Praja, J. and Mukhlas, O.
Social Capital of Lembaga Amil Zakat (LAZ) in West Java.
In Proceedings of the 2nd International Conference on Sociology Education (ICSE 2017) - Volume 1, pages 603-608
ISBN: 978-989-758-316-2
Copyright © 2018 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved
603

defending and developing its existence, and in
transforming the people. The more amount and types
of social capital being owned by an institution, the
higher chances of its success and the higher of
appreciation (trust) being accepted. To see the
capital in the relation of institution, the study
attempts to integrate the capital in Pierre Bourdieu’s
conception and the New Institution in Victor Nee’s
conception.
2 LITERATURE REVIEW
This study attempts to integrate the concept of social
capital and new institutionalism concept. Bourdieu
says that capital is an accumulated work, either in a
material form or in an incorporated or embodied
form, if it is used to get the fortune by an agent or a
group makes him/her or them possible to use social
energy in the living form of work. Capital is an
inherent power to the subjective or objective
structure and becomes a principle on which social
order based. Capital has a capability to reproduce in
an identical form or in an extended form (Bourdieu,
2002: 280). Depending upon the arena where the
capital works, and upon the fare of the
transformation which becomes the condition in an
arena, Bourdieu says that capital could be formed
into three: (a) Economic capital directly or indirectly
could be converted into money or institutionalized
into property; (b) cultural capital which could be
converted into economic capital in certain condition
and institutionalized into certain qualification of
education; and (c) social capital formed in social
necessities or social relationships which could be
converted in certain condition into economic capital
and institutionalized into such thing as honor
(Bourdieu, 2002: 281).
Victor Nee’s (2005) thought on new
institutionalism is generated initially with his idea to
explain how institutions interact with social
networks and social norms in directing economic
actions. In Victor Nee’s (2005: xv) words: New
institution revisits the idea of context-bound
rationality developed in the classical period of
sociology and focuses on the social structural contest
within which individual interests and group norms
develop as well as on the reciprocal role of norms
and interests in effecting institutional change.
Victor Nee’s new institutionalism concept is
regarded by Rochman Achwan (2014: 56) is a
concept affected by Pierre Bourdieu’s thought on the
fields, especially in studying economic life. Only
that Achwan assesses that there is some differences
in developing each own concept, like that Bourdieu
lays the state as an outsider, Nee, however, put it as
an insider. Nevertheless, Nee’s approach is regarded
by Achwan as relevant enough to study economic
phenomena in Indonesia, although Nee himself
develops his approach by his studies on economics
and politics in China.
3 METHODS
The paradigm of this research is departed from Max
Weber’s concepts of ideal type and verstehen as the
way of understanding and appreciation of a
phenomenon socially, culturally, and
psychologically in a deep consideration
(Vredenbregt, 1984: 17). A discourse on ideal type
is a part of the study on ‘objectivity’ in the social
scientific world. Ideal type conception directs a
sociologist in developing his/her capability through
guidance to construct a hypothesis. Ideal type is hint
a picture of reality but more to the aim of describing
an ambiguous ‘means of expression’ in the picture.
Empirical research attempts to comprehend a social
phenomenon placing the observed events or actions
with one or more ideal types.
Weber offers points describing that a
construction is not normative as an ideal type in our
sense to repeat wants more has no connection at all
with value –judgments and it has nothing to do with
any type of perfection other than a purely logical
one. There are ideal types of brothels as well as
religious...” (Checkland, 1999).
This research uses the method of soft systems
methodology (SSM) developed by Peter Checkland.
SSM is an approach to solve an unstructured
complex problematical situation based on the
holistic analysis and system thinking. This method
of SSM is performed to describe problems
consisting bigger social and political effects and
analyzes by using the concept of human activity as a
tool to know a problematical situation to produce
actions to raise the situation.
The present writer asserts seven levels to solve
the soft problems, that is: First, understanding
problematical situation. Second, affirming
problematical situation. Third, choosing a viewpoint
to see the situation and producing definition of
problematical roots. Fourth, developing enough
conceptual models to describe all of problematical
roots. Fifth, comparing model with the reality. Sixth,
declaring an expected and possibly performed
change. Seventh, doing action to raise the situation
of the real world.
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This researching taking analytical study of
analyzing capital capacity of zakat management
institutions in West Java, and performed in various
location, that is the offices of: The House of Zakat
(Rumah Zakat, RZ), The Wallet of the Needy
(Dompet Dhuafa), Daarut Tauhid, the Center of
Zakat of the People (Pusat Zakat Umat, PZU) of the
Islamic Union (Persatuan Islam, Persis), and other
places as agreed by the researcher and the
informants.
There are two kinds of sources being used in the
research: primary and secondary data. Primary data
are taken directly from the source earned by in-depth
interview in the managerial level or the volunteers,
those who assist in achieving the success of the
zakat programs. Besides in-depth interview, the
researcher also applies Focus Group Discussion in
the managerial and voluntary level. Whereas
secondary data are taken indirectly from the source,
like from: books, journals, internet, governmental
documents, acts, regulations, etc.
Data analysis is performed in the same time by
the processes of data gathering. Inductive analysis is
departed from rough data taken from the field. The
process of data management involves theme
identification and emerging patterns after doing data
selection, classification, and data analysis. After
categorizing interview transcripts, codification of
important points including key words and sentences
is performed.
4 RESULTS AND DISCUSSION
Zakat as a social capital is an instrument of
empowerment of the poor and social security.
Nevertheless, zakat is not one of the social security
as stated in Social Security Act (SJSN) no.
However, as part of the application of worship, the
substantive issue of zakat is a guarantee of freedom
of worship for every religious follower, including
paying zakat to the people. Meanwhile, the technical
skills required by a leader include organizational
arrangements in which it is authorized. The ability of
a leader includes the ability to organize employees
in the collection of zakat, management, and
distribution and utilization of zakat. A leader is also
required to consider or see the situation and
conditions when taking policy.
Management of zakat includes planning,
organizing, actuating, and supervision of the
distribution and utilization of zakat. LAZ vision and
mission is very coloring motion and direction that
will be directed from the establishment of zakat
institution. Vision and mission is usually socialized
to all board to be the guidance and direction of any
policy or decision taken so that the established zakat
institutions have professional direction and goals.
The main purpose of the implementation of zakat
management are: First, the increase of public
awareness in aimplementation and in the service of
zakat worship. As the reality of the society that most
of the rich Muslims (capable) have not fulfilled their
zakat worship, it is clearly not a matter of "ability"
but it is about "awareness of zakat worship" which is
less especially from Muslims themselves. This saves
homework on how Muslims generally increase their
awareness of diversity. Second, the increasing
function and role of the institution of prosperity in
the effort to realize the welfare of society and social
justice. LAZ is considered one of the institutions that
can improve the welfare of society and eliminate the
poverty of society and encourage the justice of the
distribution of property. Because the zakat is
collected from the rich to be distributed to poor
people in the area where the zakat is collected. In
this management will be the flow of funds from the
rich to the poor in various forms ranging from
consumptive and productive (investment).
Consciously then, zakat disbursement will impart
social solidarity, reduce social inequality and in turn
reduce the degree of crime in society. Thirdly, the
increased use and usefulness of zakat. Each zakat
institution has a database of giver and receiver.
Profile giver recorded to the potentials or
opportunities for socialization and coaching to giver.
Muzakki (giver) is considered LAZ as their
customer for the rest of their lives, therefore LAZ
has adequate attention and coaching to foster the
value of its trust. Against the receiver (mustahiq)
also for the sake of, the program of distribution and
utilization directed so that receiver can improve the
quality of life, from the status receiver changed to
giver.
The main zakat distribution concerns the group
that has been determined in the Qur'an. The
existence of the organizational structure / institution
of zakat consists of elements of consideration,
supervisors, and implementers, leaders who become
elements of implementers can cooperate with
elements of consideration and supervisors in taking
policy. Zakat management organizations consisting
of government (Badan Amil Zakat) and community-
managed zakat (LAZ) management bodies can still
be run. The existence of the Government Amil Zakat
Agency is one part of the implementation of the
1945 Constitution on the implementation of religion
for its adherents. On the basis of that, the zakat
Social Capital of Lembaga Amil Zakat (LAZ) in West Java
605

institution under the legitimate government remains
in effect. The zakat management institutions
established by the community are maintained
because the government is not able to solve the
social problems that exist, especially the welfare of
the poor (the poor). Especially with the many fraud
committed by government officials related to
financial issues (such as taxes) will be as difficult for
the government to attract trust (trust). The role of
zakat management institutions managed by the
community is needed to help the government.
An important issue that needs to be considered in
order to improve the quality of zakat institutions is
the existence of institutions that function to
supervise the performance of zakat management
institutions. Cross-sector cooperation in government
institutions is very important. The supervisory body
responsible for overseeing the activities of the zakat
institution shall be an authoritative institution and
composed of persons who have expertise in the field
of zakat such as Majelis Ulama Indonesia (MUI). As
it is known that MUI exists at every level starting
from the central level, regency / municipality, sub-
district level, and village. Similarly, the existence of
many Amil Zakat Institutions in government or
private offices or banks is in synergy with the Amil
Zakat or LAZ Board that has received official
permission. It is very important that efforts to
improve the welfare of the poor can be easily done.
The selfish nature of inter-agency must be
eliminated by putting forward the goalA collective
zakat management encourages independent socio-
economic movement and establishes the
advancement of people’s welfare without any
waiting time for the government to subside with its
welfare programs. In its management, this collective
zakat management by transparent and professional
managers, so that it could raise the effectiveness of
zakat as a socio-economic institution. Through
responsible, effective, and efficient management,
zakat is closer and more effective to its main idea as
an instrument for minimizing the unfortunate people.
There is strong rationalization of collective zakat
management through the LAZ, that is: First, LAZ
functions as intermediate institution between the
givers and receivers of zakat, so that it could
preserve the dignity of the receivers (mustahiq) as
well as urge the givers (muzakki) to be sincere in
performing zakat. Second, LAZ actively reminds the
givers to fulfill their obligation as well as helps them
to count the amount of the zakat to be obliged.
Third, LAZ could be able to identify and classify the
receivers objectively and accurately so that the
redistribution and effectiveness of zakat could be
realized well and effective. Fourth, LAZ is needed in
order that the givers could not feel any more to the
zakat and could prevent the receivers’ position as the
beggars.
Regarding the aspect of usage, zakat
management experiences a significant
transformation marked by such phenomena as
follow: Firstly, the revitalization, innovation, and
diversification of zakat managerial program to the
people’s welfare. The inclination of usage of zakat
fund by the LAZ focuses on development and
empowerment programs. Through the programs of
development and empowerment, the people would
have human capital, physical capital, financial
capital, and social capital needed to open up the
opportunities and better income. As the result of
Focus Group Discussion method with the managers
and volunteers of zakat management, it is known
that social capital usually forms a network with
others. This network functions in widening and
enlarging the supports for LAZ development,
building cooperation in accumulating and operating
zakat fund, and applying Islamic law based norms
and values.
By way of root definition, institutional relation is
a system of influential relation between levels (from
institutional level to organizational level, from
organizational level to individual level, from
individual level to organizational level, from
organizational level to institutional level), from
formal to informal elements in an interrelated way
(P), by way of recognizing policies, customs, shared
belief, conventions, norms, and rules (Q), in
fulfilling actors’ interests (R).
Conceptually, there are 11 (eleven) forms of
institutional relationships, that is: Firstly,
understanding the forms of institutional level
(macro) organizational level and social relationship
between individuals (micro). Secondly,
understanding the forms of institutional level of the
institutional environment (macro), organizational
level, and social relations or social networks
between individuals (micro). Thirdly, understanding
the influence of institutional level formed as
regulations or institutions, policies or state
intervention or free market to the organizational
level. Fourthly, understanding organization to be
survived by arranging formal rules suitable with the
demands of institutional environment. Fifthly
,
understanding organizational adaptation in
managing individual actions in the organization in
order to be suitable with the attainment of
organizational goal. Sixthly, understanding
individual responds to the organization in the forms
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of social interaction between them. Seventhly,
understanding individuals in considering or orienting
themselves to the organizational rules as well as
their rational (instrumental) interests. Eighth,
understanding the results of interaction between the
individuals, either in its coupling or decoupling
ways to the aims of the organization. Ninthly,
understanding the responds of the authority to the
interaction decoupled form the aims of the
organization. Tenthly, understanding the difficulties
of organizational authority in solving the problems
of the organization. Eleventh, understanding
collective organizational action directing to the
change of institutional environment (the change of
regulations, policies or state interventions).
Institutional environment affects the competition
among organizations. State policies on zakat on the
macro level could involve the emergence of pressure
to the organizations to adapt to various kinds of
(social, cultural, economic, and symbolic) capitals.
This adaptation influences to the formation of social
networks in order to facilitate capital collection and
zakat usage for productive enterprises for the needy.
In the aspect of organizational management,
institutional environment enacts the requirement that
LAZ should have programs to use more efficiently
for the people’s welfare; and have willingness to be
audited by way of islamic law and finance
periodically. This condition gives a pressure to the
organizations to apply modern organizational
management, so that on the micro level would affect
the formation of individuals for having social care as
well as accountable in the collection of the capital
and its usage. However, this influence would
demand LAZ to perform programs oriented in the
social care and accountability of ZIS fund usage.
LAZ, in its turn, demands the government to build
common care (in a collective movement) for
diminishing the poor.
Also, if it is related to the capital, the researcher
sees that institutionalization is (social) institutional
development in enacting established norms. The
construction of social institution is happened
through the process of organizational structuration
of LAZ to be externally constrained the individuals.
The process of organizational structuration gives
rewards and sanctions to the members. The
advancement of institution is an improvement based
on value and local socio-cultural systems. It means
that institutional advancement could not depart from
the institutionalized capital in the society.
The relevance between concepts and theories
being used and the findings in this research from the
aspects of social institutions at the outset LAZ is
traditional, then grew into an established
organization by the existence of law framework and
clear structures and roles. It is known that the better
social capital in a society, the better the condition of
the social institution in the society. Organizations
have more inclusive social capital (bridging social
capital) for their heterogeneous and cross cultural
streams of social group references. While in the
LAZ PZU it is more homogenous from the
perspective of socio-organizational basis, so that the
social capital is exclusive (bonding social capital).
An analytical study to the LAZ by advancing the
accountability and professionalism values to gain the
public trust through mediate service product of ZIS
reaffirms the function of social capital.
The strategy of LAZ in developing enterprises
for the receivers of zakat in West Java lays in two
aspects, the collection and the redistribution. The
strategy of collection comprises in the following
forms: (1) direct interaction in the form of religious
fund in such religious activities as Islamic teaching
gatherings, door to door collection, membership,
delivery service, and team for mutual respect
gatherings where zakat officers come to see the
giver directly; (2) indirect interaction in the forms of
People’s Fund Boxes, radio campaigns, direct mails,
media campaigns, Corporate Fund, and Earned
Income, as well as website. Whereas in the aspect of
usage there are some forms of activities like:
optimalizing the involvement of volunteers, and
forming enterprise groups.
5 CONCLUSIONS
This study finds a theoretical view of social capital
based institutional relation in the real life. Social
capital could enrich the established sociological
theory of organization, and could give explanations
concerning the power (and the weakness) of capital
in LAZ.
This institutional relation needs to be changed,
by the following reasons: Firstly, the relation
between the government and zakat institutions
should be built in a synergical way, and not vis-a-
vis, relationship. A synergical relation demands the
suitability of formal with informal environment. A
practice of synergical relation situates both
government and LAZ in a position of completing
each other, formally and informally. Secondly, the
relationship between the government and zakat
institution should be in an intensive coordination
way, especially in managing consumptive and
productive zakat, so that the distribution and
Social Capital of Lembaga Amil Zakat (LAZ) in West Java
607

allocation would be more proportional. Through
good coordination, either government or LAZ would
prevent data overlapping on the receivers and the
implementation of the programs.
The redistribution of productive zakat fund
should be oriented to empower people’s economy
through the subsidy of working capital for small
scale enterprises, the aid of working equipments, and
assistance in guiding micro and small scale
enterprises, and any other productive programs.
Those economic empowerment programs of
diminishing the poor are not to be done solitary by
zakat management institutions. In general, they are
accompanied by the third party as technical
performers, whereas the control should be done by
the management of national or local BAZ. As an
example to this is the program of giving working
capital support (operational fund) for micro, middle
and small scale enterprises.
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