Proceedings of the International Conference on Community Development (ICCD 2020)

The Role of Sharia Banking Institution in Zakat Collection as a Source of Economic Development

Authors
Try Widiyono
Corresponding Author
Try Widiyono
Available Online 20 October 2020.
DOI
https://doi.org/10.2991/assehr.k.201017.165How to use a DOI?
Keywords
zakat, economic development, Muslim countries
Abstract
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.
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Proceedings
International Conference on Community Development (ICCD 2020)
Part of series
Advances in Social Science, Education and Humanities Research
Publication Date
20 October 2020
ISBN
978-94-6239-253-3
ISSN
2352-5398
DOI
https://doi.org/10.2991/assehr.k.201017.165How to use a DOI?
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  -