Zakat Distribution to Be More Balanced Between Aid and Empowerment

The National Alms Agency (Baznas) together with the Kahmi Entrepreneurs Association (Hipka) are collaborating to optimise empowerment programmes to improve the welfare of mustahik and accelerate the eradication of extreme poverty in Indonesia. The collaboration was marked by the signing of a Memorandum of Understanding (MoU) between Baznas RI and Hipka concerning the optimisation of the management of zakat, infak, sedekah, and other religious social funds, as well as synergy for the empowerment and productive economic development of mustahik. Baznas Chairman Sodik Mudjahid said the agency is currently directing its distribution focus from previously dominant direct aid to a more balanced approach between aid and empowerment. He said this change in approach aims to ensure that zakat not only helps meet short-term needs but also encourages the sustainable economic independence of mustahik. “Therefore, we need the support of the business world, including Kadin, so that empowerment programmes can run more optimally,” he said. Sodik explained that in the field of distribution and utilisation, Baznas has various flagship programmes, including Baznas Scholarships, Liveable Homes, Baznas Disaster Response, Baznas Healthy Homes, Baznas Microfinance, Zmart, ZChicken, Santripreneur, Zakat Village, and the Extreme Poverty and Stunting Alleviation programmes. In addition to strengthening empowerment programmes, Sodik said Baznas is also continuing to push for an increase in national zakat fund collection. He noted that currently, zakat collection is still dominated by the individual sector, while the potential for zakat from business entities, private institutions, and professions is still very large to be developed. Sodik added that with the national zakat potential estimated to reach Rp327 trillion, optimising collection from various sectors will bring the realisation of zakat collection closer to the available potential. Meanwhile, Kadin Vice Chairman for Association/Union Development Benny Soetrisno expressed support for efforts to strengthen the sharia economy, community empowerment, and the optimisation of zakat management carried out by Baznas as an instrument for improving people’s welfare. “Basically, the Baznas movement is a movement based on sharia values and the spirit of togetherness. This movement also reflects the spirit of mutual cooperation that is characteristic of our nation, so it can be a means of working together well for mutual progress,” said Benny.