Role of Financial Technology in Zakah Optimization

Abstract

Indonesia, a country with a population of 265 million people, 132 million of whom are active internet users. This is a great opportunity that can be utilized by the government in collecting zakah in this era of technology literacy. Based on the research, the potential of national zakah reached Rp217 trillion per year but collected only 0.2% or Rp 6 trillion per year. In fact, according to statistical data, almost 20% of Indonesian Muslim citizens are citizens who earn enough to become muzakki. One of the causes is the muzakki gives zakah to the mustahik directly or to amil that is not integrated with an institution that has data on the management of zakah. The muzakki themselves chose to do so because of the lack of transparency and accountability possessed by the zakah management institutions. Thus, Financial technology can offer solutions to these problems. With financial technology, zakah management institutions can show their accountability and transparency to the muzakki who pays zakah. By using financial technology, financial inclusion will increase and positively correlated with human development index. This relation will guide Indonesia to zakah optimization condition. The muzakki can get the recording and data about how zakah obtained by the amil institution, how much portion obtained amil institutions, whoever and how many mustahik entitled to get zakah, then where the zakah is channeled by the institution the amil. The muzakki abroad who cannot distribute zakah directly to amil or mustahiq can easily distribute through the features provided in financial technology. With the ease of access to pay zakah and transparency offered by financial technology, acceleration in the collection of zakah will increase.