The Role of Sharia Banking Institution in Zakat Collection as a Source of Economic Development
Available Online 20 October 2020.
- https://doi.org/10.2991/assehr.k.201017.165How to use a DOI?
- zakat, economic development, Muslim countries
- Indonesia as a Muslim majority country has the opportunity to explore the potential for raising public funds through the collection of zakat payments. In the effort to explore this potential, it has been supported by Law Number 23 of 2011 concerning Management of Zakat and Law Number 21 of 2008 concerning Sharia Banking which regulates among other things Sharia Banking can receive community zakat payments. Even though it has been supported by the Regulation, but the potential to raise public funds through the zakat sector is far from optimal, compared to the collection of development funds from the tax sector. The research uses the normative legal method that uses several theories including the theory of economic development triggered by Max Weber as a prerequisite for the success of economic development. It needs stability; Predictability; Fairness; Education; and the Special Development Ability of the Lawyer. The theory of justice proposed by John Rawl regarding justice derived from fairness can be used as a tool for analyzing how to optimize the collection of zakat for economic development for a country with a majority Muslim population. Thus, economic development does not only come from collecting taxes, but also from collecting zakat. The funds originating from Zakat and Tax will complement each other to be used in economic development towards a welfare state for all residents.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Try Widiyono PY - 2020 DA - 2020/10/20 TI - The Role of Sharia Banking Institution in Zakat Collection as a Source of Economic Development BT - International Conference on Community Development (ICCD 2020) PB - Atlantis Press SP - 751 EP - 754 SN - 2352-5398 UR - https://doi.org/10.2991/assehr.k.201017.165 DO - https://doi.org/10.2991/assehr.k.201017.165 ID - Widiyono2020 ER -