Synergising Normative and Cultural Frameworks in Reforming Core Principles for Effective Zakat Supervision in Indonesia

Hak, Nurul and Setiawan, Romi Adetio and Setiawan, Adi (2024) Synergising Normative and Cultural Frameworks in Reforming Core Principles for Effective Zakat Supervision in Indonesia. Manchester Journal of Transnational Islamic Law & Practice, 20 (3). pp. 302-316. ISSN 2633-6626

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Abstract

In recent years, the International Working Group led by the Islamic Research and Training Institute has developed guidelines known as the Zakat Core Principles for effective Zakat supervision. While these efforts represent significant progress and are widely adopted in the Islamic world, we argue that the efforts miss a key piece of the cultural and moral normative frameworks by not examining how Muslim public’s support could influence the effectiveness of alternative supervision methods. In environments where transparency and disclosure are prioritised, these cultural and moral norms play a crucial role in differentiating between legitimate and illegitimate zakat transactions. However, the International Working Group primarily emphasises financial reporting and institutional development, which often overlook these cultural and moral dimensions essential for effective zakat supervision. This article draws insights from international practices, such as the Islamic Bank of Thailand's zakat account, where funds are managed within Islamic financial institutions under stringent supervision, and the Lembaga Zakat Negeri Kedah’s approach to risk management and public accountability. It argues for adopting an integrated approach that incorporates normative and cultural dimensions, aligned with Indonesia's religious and social contexts, for a more comprehensive zakat supervision and fund management strategy. This approach will not only improve the efficiency of zakat distribution but also enhance public trust in zakat institutions, leading to increased zakat collection and a greater positive impact on those in need

Item Type:	Article
Uncontrolled Keywords:	Zakat Management; Islamic Finance; Transparency; Supervision; Public Trust
Subjects:	Ekonomi dan Bisnis Islam > Manajemen Zakat Dan Wakaf
Depositing User:	furqon adli
Date Deposited:	28 Apr 2025 10:14
Last Modified:	28 Apr 2025 10:14
URI:	http://repository.uinfasbengkulu.ac.id/id/eprint/4218

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