Performance Analysis of Zakat Practices in East Lampung Regency using National Zakat Index (NZI)

Abstract

Zakat is the third pillar of Islam which has an important role to the society and the economic development. It is also the instrument that can be used to alleviate poverty. Zakat collection in Lampung Province, Indonesia in 2016 has increased, however in the same year, the poverty level also increases. One of the regencies that has the largest number of poor people is East Lampung Regency. This region has large zakat potential but the fund collected was less than one percent of its potential. Thus, the purpose of this paper is to assess and evaluate the performance of zakat practices that include the role of government, society, institutional performance and the zakat impact to the mustahik welfare in East Lampung Regency. The research took a sample of 100 households of mustahik by using purposive sampling technique. The analytical tool used is the National Zakat Index (NZI) which uses a Multi-Stage Weight Index estimation method. The result of this paper shows that the performance of zakat practices in East Lampung Regency is in the less good category with the index value of 0.38.

Keywords: National Zakat Index (NZI), poverty, performance