The Optimalization of Zakat in Achieving Maqashid Sharia Case Study of Indonesia and Malaysia

Abstract

Zakat is one of the instruments for well-being distribution. Zakat is also one of the most significant institution of Islam, in early Islamic zakat proved to be an extremely effective tool for poverty alleviation and inclusive finance. Total potential of zakat in the OIC member countries ranges from 1.8 percent to 4.34 percent of their GDP. Zakat has the potential to be developed economically. In contrary, development and performance of zakat institutions was relatively poor and this is illustrated by the collection of zakat in Muslim countries on average very low, less than 1% of GDP.

Maqashid Syariah is considered intellectual methodologies for Islamic studies and Non-Law studies. This has been used by the Muslim scholars to propose Islamic reform and revival in many aspects of live and to address problems of the Ummah in a way that is in line with Islamic tradition and aspirations. The institutions could make the Maqashid Sharia as an essential benchmark to design zakat distribution programs in both countries.

Zakat Institution objective should be the leading institution in economic empowerment of society by enacted Maqashid Sharia as the basis of designing the sustainable empowerment indicators. This paper aims to analyze and evaluate institutional program of collecting zakat in reaching Maqashid sharia and to identify the issues and the strategies of Zakat institutions. This study presents a comparison of zakat distribution programs between two countries, Indonesia and Malaysia, represented by Bazis DKI Jakarta and LZS in achieving five Maqashid Sharia aspects. This paper contributes to sustain the social life development in terms of the proper Zakat distribution by considering Maqashid Sharia. The originality of this paper is to provide provide insight for strategy on how Zakat institution could optimize their potency in achieving Maqashid Sharia.