Indonesian Political, Business & Finance News

Baznas Seeks DPR Support to Optimise Zakat Potential

| Source: ANTARA_ID Translated from Indonesian | Economy
Baznas Seeks DPR Support to Optimise Zakat Potential
Image: ANTARA_ID

The National Zakat Agency (Baznas) is strengthening its synergy with House Commission XII to optimise the potential of Zakat, Infaq, and Sedekah (ZIS) through expanded collection outreach and stronger management regulations. Baznas Chairman Sodik Mudjahid explained that Indonesia has enormous zakat potential, reaching Rp327 trillion, yet only a small fraction has been realised through Baznas at the central and regional levels as well as through National Zakat Institutions (Laznas). ‘We request support from the legislative network in the relevant commission, particularly those partnering with the Ministry of State-Owned Enterprises and the Ministry of Energy and Mineral Resources, so that zakat deductions for corporations and employees can be made mandatory and binding,’ he said. Sodik believes regulatory strengthening is also necessary to prevent ZIS management from operating in silos due to sectoral egos among institutions. ‘We propose the formation of a joint management consortium based on the representation of religious organisations, adopting the structure of the Indonesian Ulema Council (MUI), so that zakat funds can be managed collectively, transparently, and avoid being subjected to discriminatory state audits,’ he explained. He noted that the main obstacle is the current law, which does not fully support synchronisation between central and regional Baznas bodies, as collection is currently limited to Presidential Instruction-based Zakat Collection Units. ‘We propose a centralised collection scheme to enable cross-subsidies between regions. We also hope for support in mobilising ZIS from House Commission XII members and their partners, which, based on Presidential Instruction Number 3 of 2014, has great potential for ZIS mobilisation,’ Sodik Mudjahid added. He stressed that data validity is key to poverty alleviation, requiring real census processes with visual evidence of living conditions to ensure aid distribution is not influenced by local political interests. Commission XII member Bambang Haryadi affirmed the commission’s readiness to oversee regulatory strengthening and bridge inter-ministerial coordination to maximise national zakat potential. ‘This synergy is important. Mature regulations and transparent governance will ensure that zakat truly reaches those entitled and effectively reduces poverty in the country,’ Bambang said.

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