1. Strengthening The Role of Zakat as Islamic Social Finance Instrument
Irfan Syauqi Beik
Director, Center of Islamic Business and Economic Studies (CIBEST), Bogor Agricultural University, Indonesia
Bogor, May 14, 2016

2. Anatomy of Islamic Finance
BMT , Awqaf and Social Side of ISC
Islamic Commercal
Finance (ISC)
Islamic Social Finance (ISF) : Zakat and Charity

3. Current Performance of Zakat System: A Case of Indonesia

4. Table 1. National Zakat Collection (2002-2014)
Year
Total Amount of Zakat
(Billion Rupiah)
Annual Growth
(%)
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
68.39 (USD 6.84 m)
85.28 (USD 8.53 m)
(USD m)
(USD m)
(USD m)
(USD m)
(USD m)
1, (USD m)
1, (USD m)
1, (USD m)
2, (USD m)
2, (USD m)
3, (USD m) -
24.70
76.00
96.90
26.28
98.30
24.32
30.43
25.00
20.00
22.22
22.72
Source: BAZNAS (2014)

5. Table 2. Zakat Potential in IndonesiaNo
Variable
Zakat Potential
(trillion rupiah)
Percentage of GDP 1
Individual (household) zakat potential
82.7
1.3 2
Zakat of industry consists of:
Corporate zakat
Zakat of state-own companies (BUMN)
Total
114.89
2.4
117.29
1.84 3
Zakat potential of outstanding private deposits in commercial and rural banks and deposits in Islamic banks
17.01
0.27
TOTAL
217
(USD 22 billion)
3.4
Source: BAZNAS and FEM IPB (2011)

7. Zakat is distributed to around 3.8 million beneficiaries (2014)
Distribution of Zakat
Zakat is distributed to around 3.8 million beneficiaries (2014)
35% of zakat fund is distributed for productive-based programs
65% of zakat fund is allocated for education, health and consumptive-based programs

8. Example of the Program: Zakat-based Community Development

9. Example of the Program: Zakat-based Community Development

10. Socialization and Synergy Institutional Enhancement
The Way Forward
Regulatory Support
Socialization and Synergy
Institutional Enhancement

11. Thank You