Governance of zakat management organizations In Indonesia: A literature study

Abstract

Purpose: This literature study aims to analyze the governance practices of Zakat Management Organizations (OPZ) in Indonesia and identify the challenges in their implementation.

Methods: A literature study was conducted using a qualitative approach with content analysis of 16 relevant national journal articles. The procedures followed were: (1) selecting the research topic, (2) determining the focus of the study, (3) collecting the literature, (4) preparing the data presentation, and (5) compiling the report.

Findings: The findings indicate that OPZ, both BAZNAS and LAZ, have generally adopted the principles of Good Governance and Good Amil Governance, particularly regarding transparency and accountability in zakat fund management. However, OPZ governance implementation remains largely dominated by formal regulatory compliance. The transparency and accountability applied tend to be administrative, while accountability through independent audits, performance evaluation, and social impact measurement has not yet been optimally implemented. In addition, zakat distribution remains dominated by a consumptive approach, so that mustahik empowerment programs have not produced a significant long-term impact.

Originality: The study also finds that the limited quality of amil human resources, weak independent supervision systems, and suboptimal utilization of information technology constitute the main challenges in implementing OPZ governance.