Zakat Funds Up 26% as Yudhoyono, Joko Lead Way

The jakarta Globe, August 6, 2013.


Enjoying a wave of prosperity brought about by a resilient economy, Indonesia’s Muslims have not forgotten about poorer people missing out on some of the good fortune.

Days ahead of the family gatherings around the country to mark Idul Fitri, the government’s National Alms Agency (Baznas) has reported a 26 percent surge in zakat alms for the poor paid through the body compared with the year before.

A total of Rp 3 trillion ($291 million) has been paid as zakat so far this year by Indonesian Muslims fulfilling one of the religion’s five obligatory acts.

President Susilo Bambang Yudhoyono and Jakarta Governor Joko Widodo were among them, and even more people are expected to contribute after the establishment of National Zakat Day from next year.

Yudhoyono said the growing quantity of zakat donated this year showed that Muslims were becoming more willing to fulfil their religious obligations.

“This is a good start for the revival of our people’s awareness to fulfil their duty. I am calling on everyone to do their duty. Paying zakat is very important in helping our friends who are in need,” he said on Monday.

Baznas chief Didin Haidhuddin earlier in the day said the data was collated from reports by all provincial, district and city offices, as well as 18 official Amil Zakat Institutions in Indonesia.

Last month, Didin said the payment of zakat could ease poverty. He said awareness about the importance of paying zakat needed to be revived given Indonesia’s strong economic growth put more money into the pockets of middle- and upper-class people.

“If this [zakat] is well managed, well structured and transparently reported, it could become a powerful force and we will no longer be discussing poverty at a personal level,” he said on July 24.

Yudhoyono on Monday said he had talked with Baznas officials about improving the body’s performance, as well as efforts to increase the amount of zakat paid by Indonesian Muslims.

Under the 2011 Zakat Management Law, zakat contributions reduce the amount of income on which citizens are liable to pay tax. Some zakat proponents say the concession does not go far enough and are calling for the Islamic tithe to substitute for some of payers’ tax burden.

“It would reduce the tax burden shouldered by Muslims, and meanwhile encourage them to pay increased amounts of zakat,” said the chairman of East Java’s Baznas, Nur Hidayat.

To establish a better-structured zakat payment system, Yudhoyono said Baznas’s central office should strengthen its coordination with the central government and its regional offices.

The president had previously instructed the institution to optimize its nationwide zakat collection by partnering with various private zakat-payment channels and charitable organizations.

Many people, wary of government corruption, prefer to meet their zakat obligations by dealing with nongovernmental charitable foundations.

Yudhoyono has previously encouraged Muslims who volunteer to pay zakat to do so through Baznas, the official institution appointed to manage zakat funds.

According to the president, Baznas has proven itself a trustworthy and transparent institution to manage the charity funds, having undergone annual financial reviews by an independent audit body.

“For those required to pay their taxes to the government, please do pay your taxes. Meanwhile, the payment of zakat, which has been regulated by the law to be managed by Baznas, also has a very important role,” Yudhoyono said on Monday.

The president himself set an example by paying his zakat through the organization in July.

According to Baznas corporate secretary Hermin R. Rachim, Yudhoyono paid Rp 24 million in zakat through Baznas, which covers both his zakat fitrah , the special zakat paid in the month of Ramadan, and zakat mal , which is an annual zakat paid at any time of the year.

Another official who has paid his zakat through Baznas is the Jakarta governor.

“Yes, it is true, Joko is one of the muzakih [zakat payers] who have fulfilled their duties. He has submitted [his] zakat last week,” said Hermin, who declined to disclose the amount of zakat donated by the governor.

During his meeting with Baznas representatives, the president accepted a proposal from Baznas to establish a National Zakat Day on the 27th day of the month of Ramadan each year.

“There has been a suggestion to proclaim the 27th day of Ramadan as National Zakat Day. As the head of state, I support this. God willing, we will [officially] establish the 27th of Ramadan as the National Zakat Day,” he said.

The phenomenon of online payment of zakat is also increasing, with one survey showing such online transfers grew by 70 percent last year.



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