There are two types of zakat organization in the country, namely amil zakat institutions (LAZ) and amil zakat agencies (BAZ). LAZ is an organization set up by the community and endorsed by the government, while BAZ is an organization established by the government
BAZ is a government agency established to administer zakat duty, while LAZ is an institution established by the community and gain recognition from the government. BAZ and LAZ have a duty to issue a letter of Proof of Transfer Zakat (BSZ) which can be used to reduce taxable income (PKP) while paying taxes at the tax office.
Forum Zakat or abbreviated FOZ is Zakat management agency association that serves as a container assembled between BAZ and LAZ in Indonesia. This institution was established in Friday dated 19 September 1997. There are 38 LAZ that are incorporated into FOZ members. The zakat amil institutions that gathered in FOZ often stay in touch either in formal or informal events such as playing futsal together, gathering between management and FOZ members, discussion and study.
The amil zakat institutions (BAZ and LAZ) gathered in FOZ recently initiated an idea to have an integrated mustahik database. The aim is to make distribution of zakat more equitable and there is no distribution of zakat overlap. Later, each LAZ will coordinate on where region and what program will be worked by each LAZ. Moreover, in an attempt to socialize zakat movement, FOZ will work with several mainstream media and social networks like Twitter and Facebook.
The collection and distribution of zakat in Indonesia is quite unique. Because this country has a lot of charity organizations in each specialty. Each of these charity organizations has excellent programs that characterize each of them. Therefore, it became one of the zakat world excess in Indonesia where each institution does not have to share duties with deliberate, but with such a varied program, , the program automatically diversified.
Utilization and distribution of zakat in Indonesia is divided into several areas such as education, health, economic empowerment, humanity, Charity, and da’wah. The proportion of zakat funds by December 2012 channeled into education by 34%, 8% in health, economic empowerment of 8%, 16% humanity, 11% of Charity, and da’wah 24%.
One of the Indonesian government’s efforts to encourage association zakat is to issue a zakat policy as a reduction of taxable income. Each muzakki that make zakat payments via BAZ and LAZ which is registered will receive Zakat Deposit Proof (BSZ) that can be used as a deduction from taxable income component.
Zakat that collected in Indonesia succeeded reduce poverty rate of 8.9%, 13.05% depth of poverty (average poverty gap), the income gap 13.14%, 19.30% Mustahik severity of poverty. Jakarta BAZNAS performance can also increase the proportion of 40% of the poor group revenue amounted to 1.30% and lower income inequality (Gini coefficient index) of 13.64%.
Zakat fund raising accumulation in Indonesia has increased from year to year. In 2011 BAZ and LAZ managed to raise zakat amounting to IDR 1.73 trillion, in 2012, the total zakat collected reached IDR 2 trillion, and by 2013 total zakat fund raising reach IDR 2.4 trillion. In 2014, zakat fund collection is predicted to reach 2.875 trillion IDR to 3 trillion IDR in the pessimistic scenario, IDR 3.01 trillion to IDR 3.25 trillion in the moderate scenario, and more than IDR 3.25 trillion in the optimistic scenario.