JAKARTA -— Responding to special media coverage of the phenomenon of religious social charity fund management, on Tuesday (July 5, 2022), the Zakat Forum (FoZ), an association that oversees 196 Zakat Management Organizations (OPZ) in Indonesia, stated the following:
- The regulatory framework and oversight mechanisms for zakat management organizations (OPZ) in Indonesia are very strict and rigid. In accordance with Law No. 23 of 2011 concerning Zakat Management, there is a multi-layer oversight mechanism involving various stakeholders, such as the Ministry of Religious Affairs, BAZNAS, the Indonesian Ulema Council (MUI), and others, which help minimize the potential for public fund misappropriation and conflicts of interest within zakat management organizations.
- The Zakat Forum states that the supervisory mechanism of Zakat Management Organizations consists of internal supervision, including internal audits and sharia supervisors accredited by the Indonesian Ulema Council; then there is an external supervisory mechanism involving sharia compliance audits by the Ministry of Religious Affairs, as well as routine reporting every semester to BAZNAS. Furthermore, the regulation also requires every OPZ to be audited by a Public Accounting Firm and to publish the results through available communication channels.
- The Zakat Forum has announced that the Indonesian National Work Competency Standards (SKKNI) for zakat management have been compiled and ratified as a tangible manifestation of the strengthening of the zakat ecosystem, which upholds financial management transparency and program accountability, as well as the management of zakat management organizations.
- The use of OPZ operational funds is strictly regulated in accordance with MUI Fatwa No. 8 of 2020 concerning Amil Zakat and the Minister of Religious Affairs Decree No. 606 of 2020 concerning Sharia Audit Guidelines, which stipulate that it shall not exceed 1/8 or 12.5% of the total zakat funds collected and 20% of the total infaq, alms, and other religious social funds in one year.
- The Zakat Forum states that the regulatory framework, supervisory mechanisms, institutional code of ethics, and competency standards only apply to zakat management organizations under the legal umbrella of Law No. 23 of 2011 on Zakat Management. Outside of these entities, the legal umbrella and supervisory mechanisms used as references are different and are not part of the zakat ecosystem. In this case, the Zakat Forum states that ACT (Aksi Cepat Tanggap) is not part of a zakat management organization.
- The level of compliance and discipline of OPZs with regulations, supervisory mechanisms, codes of ethics, and competency standards for zakat management is a key factor that contributes to the growth of public trust in the management of public charity funds through OPZs. Furthermore, this also supports efforts to empower communities and alleviate poverty in remote areas of the country.
- The Zakat Forum states that members of the Zakat Forum in the National Economic Recovery (PEN) (2021) have contributed to communities affected by COVID-19 in 34 provinces, with a total of 3.05 million beneficiaries divided into 3 (three) main sectors, namely the MSME sector with 323,850 beneficiaries, equivalent to 32,385 MSMEs; the Health sector, which contributed to 763,570 beneficiaries; and the Social Protection sector, which provided benefits to 1,969,234 people. The distribution carried out by members of the zakat forum always refers to the regulations and sharia aspects established by the Ministry of Religious Affairs and BAZNAS.
- The Zakat Forum appreciates the trust and mandate entrusted by the community to each member of the Zakat Forum. Hopefully, this can continue to be improved in line with efforts to improve the standards of zakat management organizations and the quality of services to the Indonesian people as a whole.
FoZ (Zakat Forum) is an association of zakat management institutions that serves as a gathering place for Zakat Management Agencies (BAZ) and Zakat Management Institutions (LAZ) throughout Indonesia. Currently, FoZ has 196 member institutions from Aceh to Papua. The main functions of FOZ are to strengthen the capacity and competence of managers, advocacy, synergy, and collaboration on poverty alleviation and community empowerment programs.