President’s Expert: BAZNAZ Must Improve LAZs’ Performance
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Dean of the Faculty of Economy and Management of IPB University Irfan Syauqi Beik testifying as an expert for the President at a judicial review hearing of the Zakat Management Law, Wednesday (5/28/2025). Photo by MKRI/Panji.


JAKARTA (MKRI) — The President/Government presented Wahiduddin Adams and Irfan Syauqi Beik as experts at a material judicial review hearing of Law No. 23 of 2011 on Zakat Management on Wednesday, May 28, 2025 in the plenary courtroom. Dean of the Faculty of Economy and Management of IPB University Irfan Syauqi Beik said the allegation that the National Zakat Board (BAZNAS) and zakat amil (manager) institutions (LAZ) are unequal is irrelevant since there is the national zakat index (IZN) that measures the performance of the national zakat system of the collective zakat institutions.

“So any attempt to weaken LAZ by BAZNAS would definitely lead to a decline in national performance. This will dismiss concerns about BAZNAS’ zakat monopoly that is destructive and detrimental to LAZ,” Irfan said.

He explained that on December 13, 2016 BAZNAS developed IZN, which measures the macro-and micro-dimensions related to the national zakat system’s performance. Governance is measured based on aspects of planning and development, control and regulatory compliance, zakat collection, operation, distribution and utilization of zakat, health of zakat institutions, as well as reporting and technology.

Irfan, who is also the deputy secretary-general of the World Zakat and Waqf Forum (WZWF), IZN can help BAZNAS in seeing the performance of zakat management more objectively. It is BAZNAS’ obligation to take necessary actions to improve regional BAZNAS or LAZ whose performance is not satisfactory, as ignoring it would put the blame on BAZNAS.

“BAZNAS must not only think of itself, but also of all provincial BAZNAS, regency/city BAZNAS, and LAZ at all levels,” said Irfan, who is also a member of the executive board of the National Sharia Council of the Indonesian Ulema Council (MUI).

Is BAZNAS a Superbody?

Next, former constitutional justice Wahiduddin Adams explained that BAZNAS’ regulatory function through its regulations is limited both in their binding power and the scope of their contents, given that BAZNAS was formed by order of higher laws and regulations such as government regulations (PP), regulations of the Minister of Religious Affairs, etc. BAZNAS regulations are also made in order to implement higher laws and regulations, i.e. Law No. 23 of 2011 on Zakat Management, Government Regulation No. 14 of 2014 on the Implementation of Law No. 23 of 2011, and/or Minister of Religious Affairs Regulation on the organization and work procedures of the National Amil Zakat Agency, which need to be regulated further.

In addition, Wahiduddin continued, basically central, provincial, and regency/city BAZNAS are fostered and supervised by the Minister of Religious Affairs. BAZNAS’ authority is limited to imposing administrative sanctions in the form of written warnings to provincial or regency/city BAZNAS and LAZ.

The administrative sanctions in the form of temporary suspension of activities and revocation of operational licenses are determined by the minister. Administrative sanctions imposed on zakat amil (managers) are determined by the head of the regency/city office of the Ministry of Religious Affairs.

“BAZNAS was first formed by law, then its regulations are at a level even below the ministerial regulations, because so far the basis for its provisions is also ministerial regulations, so there are actually limitations for it be called a superbody,” Wahiduddins said.

On the other hand, deputy chairperson of the Central MUI Education and Cadre Commission as well as the Dompet Dhuafa sharia supervisory board K.H. Wahfiudin Sakam Bahrum had testified as an expert for the Petitioners for Case No. 97/PUU-XXII/2024 on Friday, May 9. He said the State should not interfere in the management of zakat.

“The State should not interfere in the management of zakat among Muslims if it does not interfere in the management of finances of other religious communities, for example tithe among Christians,” Wahfiudin said at that time.

He said that the State cannot allow the distribution of zakat to parties with political interests, both institutional and personal, in order to maintain social justice. BAZNAS’ role is increasingly dominant after Law No. 23 of 2011 came into effect, as it has been granted a variety of authority in the zakat ecosystem, including the authority to provide recommendations for the issuance of LAZ permits.

Also read:

Dompet Dhuafa, Jakarta Zakat Forum Challenge Zakat Management Law

Dompet Dhuafa and Forum Zakat Revise Petition on Zakat Management Law Review

Govt: BAZNAS and LAZ Complement the Zakat Management System

LAZISNU Argues the Enactment of Zakat Management Law Improves Public Trust

IDEAS: Zakat Management Law Causes Harms to Mustahik and Muzaki

Constitutional Law Expert: Zakat Management a Communal Right of the Muslim Community

Petitioners’ Expert: State Should Not Intervene in Zakat Governance

The Petitioners are Dompet Dhuafa Republika Foundation, the Jakarta Zakat Forum Association, and Arif Rahmadi Haryono. All three of them actively engage in zakat management. For this case, they are represented by legal counsels Bambang Widjojanto and Denny Indrayana.

As zakat contributors (muzaki), the Petitioners claimed to have suffered harm due to the provisions on zakat management under several articles of Law No. 23 of 2011. Community-based LAZs have long been engaging in public education, campaigns, and awareness-raising concerning zakat, infaq, and sadaqah (ZIS).

The Amil Zakat Institution (LAZ), which has existed for a long time, hoped that BAZNAS and LAZs would have equal roles and duties. They cited the regulation regarding state and private banks, which are equal, as well as the role of the Bank of Indonesia, which is responsible for monetary policy, regulating and supervising the financial system, and maintaining the stability of the rupiah.

The Petitioners believe Article 5 paragraph (1) implicitly and explicitly shows that the main purpose of the establishment of BAZNAS is to take over the collection of zakat from the community to the State and negate the history of community management of zakat. In fact, when BAZNAS was newly established, to foster BAZNAS, BAZNAS and Dompet Dhuafa Republika Foundation cooperated in the management of zakat in a program known as BAZNAS Dompet Dhuafa, given that BAZNAS had no prior experience in managing zakat.

The Petitioners argue that the provision has denied this history. For example, it excluded the zakat management institutions that have existed before BAZNAS from the drafting of regulations on zakat management. The Law also does not facilitate community-based zakat management organizations.

In the petitums, the Petitioners plead the Court to declare Article 38 and Article 43 paragraph (4) unconstitutional and not legally binding. They also ask the Court to reinterpret Article 5 paragraph (1), Article 6 paragraph (1), Article 7 paragraph (1), Article 16 paragraph (1), Article 17, Article 18 paragraph (2), Article 19, Article 20, Article 41, and Article 43 paragraph (3) as per their request.

Author       : Mimi Kartika
Editor        : Lulu Anjarsari P.
PR            : Fauzan Febriyan
Translator  : Yuniar Widiastuti (NL)

Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian versions, the Indonesian version will prevail.


Wednesday, May 28, 2025 | 13:48 WIB 129