ANALYSIS OF ZAKAT MANAGEMENT EFFICIENCY LEVELS IN TWO ASEAN COUNTRIES (STUDIES IN INDONESIA AND MALAYSIA)

Abstract

This study aims to determine the level of efficiency of the Zakat Management Agency in ASEAN, especially Indonesia, Malaysia and Singapore as a country that has a Zakat Institution and publish its financial statements in the period 2020 to 2023. Method/design/approach: The efficiency of this research is processed using Data Envelopment Analysis (DEA) with a production approach. This method measures the ratio between input and output compared between the zakat institution studied. Output variables used in this study include collecting funds and distribution funds. While the input variables used are Personnel Costs, Operational Costs and Socialization Costs. Result and conclusion: The results of this study indicate that the optimal efficiency consistently for four years was owned by MAIK (Majelis Agama Islam dan Adat Istiadat Melayu Kelantan) and MUI (Majelis Ulama Indonesia) while in BAZNAS had experienced inefficiencies in Maluku Utara 55%, in Papua 77%, and in Nusa Tenggara Timur it was 68%. The contribution of this research can be an evaluation tool for the Zakat Institution in terms of managing funds and arranging strategies for raising and channeling funds better. Originality/value: Zakat is believed to be a means to create justice for the distribution of community wealth. However, in fact the reality emerged in Indonesia shows that the collecting of zakat is still far from the potential that exists. In Malaysia, the problem of zakat distribution is still found in many states. Therefore it is necessary to optimize zakat through efficiency.