Realizing Social Welfare in Zakat Act of 23/2011: The Role of Rumah

Zakat in Indonesia

Widyawati

and Munir

aculty of Sharia and Law, UIN Sunan Gunung Djati Bandung, Bandung, Indonesia

Faculty of Ushuluddin, UIN Sunan Gunung Djati Bandung, Bandung, Indonesia

Keywords: zakat, social welfare, Zakat Act, Rumah Zakat

Abstract: The main objective of zakat according to Indonesian Act No. 23/2011 on Zakat Management is to realize

social welfare on the one hand, and to eradicate poverty on the other. This noble objective, however, is not so

clear and measurable that leads to different ideas on social welfare among the institutions involved in zakat

management. This in turn will influence the programs they planned to be implemented through zakat fund.

This study discusses the notion of social welfare and its implementation in zakat management with a specific

reference to Rumah Zakat. This institution has been involved in zakat management since 1998 and successful

not only in collection of zakat fund, but also in its distribution in systematic and well-innovated manner. This

can be seen from the programs it has to realize social welfare. This article concludes that rather than involved

qualitatively in a conceptual discussion of social welfare, Rumah Zakat prefers to implement some social

dimensions of welfare through many programs. It believes that through the programs it has implemented,

Muslim society aware of the presence of social welfare from zakat fund they have collected through this

institution. This can be seen from the growth of their trust to Rumah Zakat that increases from time to time.

Moreover, the qualitative of notion of social welfare issued in Zakat Act opens the room for this institution to

interpret its essence through innovative programs. This conclusion is drawn from an analysis of data collected

from in-depth interviews with the managers of Rumah Zakat as well as from reviews of literature related to

this institutions and relevant writings on social dimensions of zakat. As for the method, this study draws

largely on content analysis followed with theological and political approaches. This is because zakat is

basically a religious doctrine (theology), but at the same time it is political due to its implementation should

be carried out in accordance with Zakat Act issued by the government.

1 INTRODUCTION

Zakat has a very important role in eradication of

poverty in societies as well as in increasing their

prosperity. This can be seen from the main objective

of zakat that is directed to a group of poor people

known as al-asnaf al-thamaniyah (eight categories)

in Islamic law (Sabiq, 1982). It is intended through

zakat that there will be a decrease of the gap between

the rich and the poor.

This objective is in line with responsibility of the

state which was founded to ensure the life of its

citizen, including their prosperity. It is for this reason

that some countries with Muslim majority inserted

zakat affairs into their policies. In general, there are

three patterns in which the Muslim states took

policies towards zakat. First, some states do not

institutionalize zakat fund implying that the former is

not concerned with the latter. Among 40 Muslim

countries, 24 take this policy leaving zakat issues to

Muslim society. Turkey is a case in point. Second,

some countries equate zakat with tax in that if the

former was carried out the latter would follow.

Kingdom of Saudi Arabia is a good example in this

regard. Third, some countries facilitate collection and

distribution of zakat fund, but they do not oblige their

citizen to pay zakat. These countries simply help how

zakat fund can be collected and distributed properly

(Powell, 2009).

Indonesia belongs to the last pattern by issuing the

act of zakat without involving directly in this area.

Since 1999, Indonesia has issued the Act of Zakat

Number 39 of 1999 to eradicate the poverty and

increase welfare of Indonesian society. This act was

then amended twelve years later, in 2011, through Act

of Zakat Number 23 of 2011 (Widyawati, 2011).

Widyawati, . and Munir, .

Realizing Social Welfare in Zakat Act of 23/2011: The Role of Rumah Zakat in Indonesia.

DOI: 10.5220/0009919401270132

In Proceedings of the 1st International Conference on Recent Innovations (ICRI 2018), pages 127-132

ISBN: 978-989-758-458-9

127

According to the latter act, the objective of zakat

is “to increase the merit of zakat fund in order that the

welfare of society can be realized and the poverty can

be eradicated” (meningkatkan manfaat zakat untuk

mewujudkan kesejahteraan masyarakat dan

penanggulangan kemiskinan) (The Act Number 23 of

2011 on Management of Zakat, Article 3 (b)., no

date). It is stipulated further in this act that the state

should facilitate the establishment of National Zakat

Board (Baznas) at national, provincial and district

level. Besides, it is allowed for society to build

institute of zakat management (LAZ) in order to help

Baznas come with great success in collection and

management of zakat fund.

Rumah Zakat Indonesia (RZI) is one of institutes

established by society in 1999 under the name

Dompet Sosial Ummul Kuro in Bandung. From time

to time, this institute developed significantly in both

collection of zakat fund and creation of program to be

implemented through zakat fund. It is not surprisingly

if RZI become prominent institute of collection and

distribution of zakat fund. Many studies have

conducted by a number of scholars on this institute

(Lessy, 2013, Thoriquddin, 2015, Wahyuni, 2017).

However, most studies emphasize on the

management of zakat fund and its distribution

neglecting the fact that such a management is

intended to realize the objective of zakat as

mentioned in the Act of Zakat.

This paper discusses the concept of welfare

according to RZI with specific reference to the

programs carried out by this institute in order to

implement the objective of zakat mentioned in the

Act of Zakat. It is expected that the success of

program implementation held by this institute can be

a model at other institutes or places.

2 METHODOLOGY

The data used in this paper is result of interview with

the officials of RZI. In addition, this paper also

benefits the works of scholars relevant to the issues

raised in this paper. As for the method, this paper

draws on content analysis companied with political

approach (Monroe, 2000).

3 RESULT AND DISCUSSION

3.1 Rumah Zakat At Glance

Initially, this institute was a group of Islamic study

known as Majelis Taklim Ummul Quro. In July 2,

1999, this group then initiated to build a philanthropic

institution which is concerned with such social and

humanistic problems as poverty, backwardness,

unemployment and so on. The institution was named

after the group of Islamic study called Dompet Sosial

Ummul Quro (Ummul Quro Social Pocket) (Rumah

Zakat, no date a). It is commonly known that

discussion of zakat fund in that year was a national

issue when Indonesia was under monetary and

political crisis. Therefore, zakat fund was considered

instrumental in solving economic crisis so that some

institutions were involved in zakat fund collection,

including QSUQ. The government finally issued the

Act of Zakat in September 1999, and QSUQ

anticipated this act (Widyawati, 2011).

In March 18, 2003, Dompet Sosial Ummul Quro

was transformed into Rumah Zakat Indonesia along

with the issuance of Decree of Minister of Religious

Affairs Number 157 recognizing that RZI was

national board of zakat. However, in 2010, this

organization changed its name from Rumah Zakat

Indonesia into Rumah Zakat, deleting Indonesia

(Rumah Zakat, no date a). This change is in view of

its following vision.

This organization has vision to be “International

philanthropic institution on the basis of professional

empowerment” (Lembaga Filantropi Internasional

berbasis pemberdayaan yang profesional). As its

missions, this organization intended to: (1) play an

active role in building international philanthropic

network, (2) facilitate the independence of society,

and (3) develop an excellent human resources to

optimize all aspects of resources (Rumah Zakat, no

date j). It is noteworthy that through international

level this organization can be involved distribution of

zakat fund not only throughout Indonesia, but also in

other countries, such as Palestine to which Rumah

Zakat had distributed aid (Rumah Zakat, no date a).

To implement such vision and missions, the

organization runs corporate values as follows: (1)

trusted, i.e., to run the business in professional,

transparent and reliable manner, (2) progressive, i.e.,

to make an innovation bravely in order to gain

benefits better, (3) humanist, i.e., to be fully

concerned with human issues sincerely and

universally, (4) collaborative, i.e., to work together

with other institution to create a better world (Rumah

Zakat, no date j).

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At the present, Rumah Zakat has no less than 18

branches across Indonesian provinces. This means

that Rumah Zakat is a trusted institution to which

Indonesian Muslims submit their zakat and other

philanthropic traditions in Islam, such as endowment

(waqf), alms (sadaqah) and so on. This is because this

institute is open and transparent to public in terms of

its financial and administrative affairs. For example,

every year, RZ asks public auditors to audit its

financial income and expenditure, and then finally

reports it to public annually (Rumah Zakat, no date b,

no date c). Furthermore, the programs Rumah Zakat

proposes are in line with the needs of poor society,

such as education, health, economic development,

and so on.

It is for this success that this institute has been

recognized by a number of institutions as a successful

philanthropic organization. In 2004, this institute was

awarded as the best institute of zakat management

(Lembaga Amil Zakat Nasional) in Islamic Social

Responsibility and the best organization in zakat

development by Indonesia Magnificence of Zakat.

Ten years later, 2014, this organization was also

awarded as Top of Mind Zakat Management in the

3rd Indonesia Middle-Class Brand Forum (IMBF)

held by SWA Magazine and Center for Middle-Class

Consumer Studies (CMCS). At the same year,

Coordinating Ministry of Public Welfare awarded

this institute “certificate of appreciation” for its

participation annually in Public Welfare Service

Expedition (Expedisi Bhakti Kesejahteraan Rakyat).

In 2016, Rumah Zakat was awarded as Champion of

Original Brand by SWA Magazine recognizing that

this institute has been a favorite of consumers and

popular in Indonesia. The same award was given in

2017 for its consistency in maintaining original

brand.

Those awards and certificates indicate that RZ has

been a successful organization in zakat management

and distribution to public. This success will be

apparent also in the implementation of programs that

RZ has carried out.

3.2 Main Programs

There are six main programs that RZ continuously

and consistently conducted. They include “senyum

juara, senyum mandiri, senyum sehat, senyum lestari,

empowered Ramadan and super-qurban.” The first

four programs are started with the word “senyum”

(smile) indicating that RZ attempts at installing

optimistic attitude among the beneficiaries of zakat

fund. The details of these programs can be described

as follows.

“Senyum juara” (smile of champion) is directed

towards field of education (Rumah Zakat, no date d).

RZ believed that education plays an important role in

development of human resources. This is due to the

fact that education is believed to be instrumental for

the progress of nation and at the same time can break

vicious circles of poverty. Through this program, RZ

is committed to the improvement of education in

terms of qualification of students, teachers, quality of

infrastructures and so on.

There are five programs in the sectors of

education in which RZ involved. First, scholarship for

students to support and facilitate their compulsory

education. However, RZ also endorses the students to

continue their education at higher level. This means

that RZ has serious attention to the continuation of

students’ education. Therefore, this scholarship is

awarded to students of elementary school, as well as

of high school and tertiary level.

Second, scholarship for student of school named

School of Champions (sekolah juara) and managed

directly by RZ. Through this program, students can

go to school for free and get all facilities provided by

school such as educational equipments, trainings,

skills as well as religious education. All these

facilities are intended to ease the students achieve

their highest academic performance so that they can

be champions. Moreover, RZ believed that through

religious education the students will have religious

characters that guide them in their life.

Third, school of champions (sekolah juara) is a

school established by RZ, among other things,

through zakat fund. This school is free from any

charge especially for students from underprivileged

family. They can enjoy all facilities provided by the

school to support their learning.

Fourth, teacher of champions (guru juara). This

program is intended to improve qualification of

teachers of rural areas by giving them assistance. This

assistance can take forms of training, supporting

facilities and equipments for teaching, as well as

economic aid for teachers. This is due to the fact that

school and education in rural areas are left behind by

school and education in urban areas. Therefore,

through this program RZ expects that there is a gap

between education conducted in urban and rural areas

so that equality of education can be met.

Fifth, car of champions (mobil juara). Basically,

this car functions as a travelling library that provides

books and educational equipments for students, such

as computer, internet access and so on. RZ believes

that this program will be instrumental to facilitate

rural students to meet their needs in terms of internet

access and so on. Again, through this program it is

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129

expected that there is no gap between education in

urban and rural areas.

Sixth, assistance to school. The objective of this

program is to help certain schools that need assistance

in terms of their building, learning equipments,

library, laboratory, and so on. However, RZ also

provides assistance for renovation of school if it is

necessary.

“Senyum mandiri” (smile of independent)

basically is a program intended to solve economic

problem of society on the one hand and to reduce

poverty on the other (Rumah Zakat, no date f). This

program consists of three activities. First, small and

medium-sized enterprises (SMEs) directed to

underprivileged families. In this regard, RZ serves as

guide, mentor, assistant, or coach to run micro and

small businesses of society. This means that RZ

provides what the society needs to develop their

businesses. To some extent, RZ aids through capital

assistance and facilities in accordance with

beneficiaries’ needs.

Second, productive agriculture. This program is a

kind of program of empowerment intended especially

for young famers. In this regard, RZ facilitates

farmers in provision of means of production,

machinery tools, seeds and even helps them through

monitoring. The objective of this program is to

encourage the young generation to be active in

agriculture which finally will reduce unemployment.

Third, productive livestock. This program is intended

to help the cattlemen get additional income from

breeding through distribution of seeds and provision

of facilities.

“Senyum sehat” (smile of healthy) is a program

intended to improve public health of society (Rumah

Zakat, no date h). This program consists of free

circumcision for children especially from

underprivileged family. In addition, RZ also provides

assistance for society through direct aid, distribution

of fund to meet their health needs. Besides, this

organization also provides a free ambulance for needy

peoples. This ambulance serves delivery service for

people to and from hospitals, or even to cemetery for

the dead. Another service provided by RZ is free

clinic of health. This clinic gives general service for

needy peoples as well as health service for children

and mothers, including family planning, childbirth

and so on for free of charge. In addition, RZ also

provides aids of payment of health insurance for

underprivileged family at certain health clinics under

cooperation with this organization. The last is nutrient

garden which is intended to help people meet their

nutrition especially in terms of vegetables and fruits.

“Senyum lestari” (smile of sustainable) is a

program initiated to respond environmental issues

(Rumah Zakat, no date e). Through this program RZ

intends to improve environmental qualities and to

reduce social problems caused by environmental

crises. To realize this program, RZ carries out some

following agenda. These include independent

sanitation post, water and sanitation for all, water well

and trash bank. According to RZ, “senyum lestari”

can help people get so healthy environment and

atmospheres that ensure their life.

Two other main programs of RZ are empowered

Ramadan (Rumah Zakat, no date g) and superqurban

(super sacrifice) (Rumah Zakat, no date i). If the

former is conducted from the beginning of Ramadan

month until the end of it, the latter is carried out when

Adha fest comes. During Ramadan, Muslims are

obliged to fast from early morning and will break

fasting in afternoon. RZ takes this moment to collect

zakat fund and at the same time to distribute it through

breaking fast together, and aid the poor peoples. At

the end of Ramadan, RZ also takes this moment to

provide gifts for poor family in the eve of Id al-fitr.

On the other hand, when Id al-Adha comes, it is

usual for people sacrifice certain animals, especially

sheep and cow. The lamb and beef are then

distributed immediately to poor peoples. As a result,

the lamb and beef are out with end of Id al-Adha.

From this condition, RZ initiates to make this

sacrifice beneficial for long period, especially after Id

al-Adha. Instead of distribution directly, RZ makes

those flesh become cornet that will be useful in other

times when it is necessary.

3.3 Realizing Welfare through Zakat

So far we have discussed the role and programs

implemented by RZ. This section discusses the

relation of such programs to the concept of welfare as

recorded in the Act of Zakat of 2011. This act does

not stipulate clearly what it means by welfare, and

this leads to different understandings and concepts

among the boards of zakat.

Rather than discussing conceptual framework of

welfare, RZ puts emphasis on how such concept can

be realized. It can be seen from the programs that it

has conducted as have been discussed above.

Moreover, RZ prefers to refer to Sustainable

Development Goals proposed by United Nations than

to other references (Division For Sustainable

Development Goals, no date).

For example, in the field of education, RZ attempts at

meeting second goal of Sustainable Development

Goals. According to this goal, there are three aspects

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that should be emphasized: students, infrastructures,

and teachers. It is these aspects that RZ tries to realize

so that everybody has access to education at every

degree, with good and fine schools, and with qualified

and competent teachers. Finally, through this

program there will no gap between education in rural

and urban areas (‘Interview with Muhammad Isa,

Branch Manager of Rumah Zakat, Bandung

September 2018’, no date).

In the field of economics, RZ has empowered

small and micro-sized business in order to help

people to be independent economically. This in turn

reduces poverty that happens to society. Again, RZ

claims that this program is in line with the first goal

of Sustainable Development Goals (‘Interview with

Muhammad Isa, Branch Manager of Rumah Zakat,

Bandung September 2018’, no date).

In the field of health, RZ believes that health

program supports the third goal of Sustainable

Development Goals on health and wellbeing. In this

regard, the target issued by RZ is to ensure the health

and wellbeing of society at different levels of life.

Finally, through “senyum mandiri”, RZ in fact

expects to reduce poverty which is also one of the

targets of Sustainable Development Goals initiated by

United Nations. Moreover, through this program it is

expected that society can be saved from poverty,

backwardness and so on (‘Interview with Muhammad

Isa, Branch Manager of Rumah Zakat, Bandung

September 2018’, no date).

Based on the above discussion, RZ prefers to

realize welfare in real life of society than to discuss it.

Moreover, from 17 goals proposed by United

Nations, RZ emphasizes only the first four. This is

due to the limitation of fund collected from zakat and

other kinds of philanthropic endeavors. This indicates

that zakat fund collected by RZ is very instrumental

for realization of welfare in society although with

small fund.

4 CONCLUSIONS

Rumah Zakat has proved that if zakat fund managed

very well, it can be instrumental for development of

society. This development in turn will realize the

objective of zakat as stipulated in the Act of Zakat of

2011. Moreover, these objectives are relevant to the

purposes of Sustainable Development Goals to which

Rumah Zakat refers. This implies no doubt that zakat

fund can be an important and instrumental to improve

quality of life in Muslim society.

REFERENCES

Division For Sustainable Development Goals (no date)

Sustainable Development Goals, Sustainable

Development Knowledge Platform. Available at:

https://sustainabledevelopment.un.org/sdgs (Accessed:

16 October 2018).

‘Interview with Muhammad Isa, Branch Manager of

Rumah Zakat, Bandung September 2018’ (no date).

Lessy, Z. (2013) Philanthropic Zakat for Empowering

Indonesia’s Poor: A Qualitative Study of Recipient

Experiences at Rumah Zakat. Indiana University.

Monroe, A. D. (2000) Essentials of Political Research.

Oxford: Westview Press.

Powell, R. (2009) ‘Zakat: Drawing Insights for Legal

Theory and Economic Policy from Islamic

Jurisprudence’, Seattle University School of Law

Research Paper, 7(43), pp. 10–17.

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Zakat. Available at:

https://www.rumahzakat.org/en/tentang-kami/sejarah/

(Accessed: 16 October 2018).

Rumah Zakat (no date b) Laporan Keuangan, Rumah

Zakat. Available at:

https://www.rumahzakat.org/en/laporan-keuangan/

(Accessed: 16 October 2018).

Rumah Zakat (no date c) Laporan Tahunan, Rumah Zakat.

Available at: https://www.rumahzakat.org/en/laporan-

tahunan/ (Accessed: 16 October 2018).

Rumah Zakat (no date d) Senyum Juara, Rumah Zakat.

Available at: