Indonesian Political, Business & Finance News

Zakat Governance Under Scrutiny, Accountability Key to Public Trust

| | Source: REPUBLIKA Translated from Indonesian | Regulation
Zakat Governance Under Scrutiny, Accountability Key to Public Trust
Image: REPUBLIKA

Zakat governance in Indonesia is deemed in need of reinforcement, particularly in terms of transparency and accountability, amid rising demands for more professional management of community funds. Professor of Sharia Accounting at Universitas Tazkia, Murniati Mukhlisin, stated that zakat institutions cannot rely solely on public trust but must be backed by clear and measurable reporting standards. “Zakat institutions in Indonesia are required to use PSAK 409 issued by the Indonesian Institute of Accountants. This needs to be audited to assess the level of compliance,” Murniati said in a written statement on Monday (20/4/2026). According to her, strengthening governance is crucial as the complexity of zakat management increases, both in collection and distribution. Without a good reporting system, the vast potential of zakat funds risks not being optimal in promoting community welfare. On the other hand, strong governance is also seen as an important factor in maintaining public trust in zakat management institutions, especially amid growing attention to transparency in the sharia financial sector. Murniati added that the application of accounting standards like PSAK 409 must be accompanied by adequate supervision and audits so that its implementation is not merely administrative. This issue of strengthening zakat governance has also been a focus in international forums, including the 6th Global Forum on Islamic Economics, Banking, and Finance (IEFB) 2026 in Lahore, Pakistan, attended by Indonesian researchers. In that forum, the importance of cross-country collaboration to strengthen zakat management practices through case comparisons and better standard development was discussed. “It is hoped that researchers from both countries can collaborate to create case comparisons so they can learn from each other,” said Murniati. Strengthening zakat governance is considered an important part of developing the sharia economic ecosystem, particularly to ensure that religious social funds are managed transparently, accountably, and on target.

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