- Since the enactment of Law Number 23 Year 2011 on Zakat Management which was effective in 2015, the progress in building zakat management ecosystem is still not fully optimized. For nine years after its implementation, only around 30% of the entire zakat management network has entered the zakat ecosystem. This is indicated by the still large percentage of Off Balance Sheet collection (26.68%) compared to On Balance Sheet (73.31%) of National ZIS DSKL in 2023.
- According to Law Number 23 of 2011, UPZ is an institution formed by the community that has the task of assisting the collection, distribution, and utilization of zakat. Based on BAZNAS RI's Zakat Collection Roadmap 2023-2025 (DKPN, 2023), one of the strategies to increase On Balance Sheet collection is through increasing the number and optimizing the role of UPZ.
- The strategy of transferring Off-Balance Sheet fund collection to On-Balance Sheet through the role of UPZ can be done in 2 ways, namely 1) Increasing the number of UPZ through the Decree of the Chairman of BAZNAS and 2) Optimizing the role of UPZ through multi-stakeholder cooperation between institutions.
- The first strategy that can be done to increase the number of UPZ is in terms of simplifying the regulations and administration of UPZ establishment, especially at the village and sub-district levels. This is further accompanied by the direction of the Chairman of BAZNAS of the Republic of Indonesia to all BAZNAS Chairmen at both the Provincial and Regency / City levels, to massively issue a Decree (SK) for the establishment of UPZ in the area. The BAZNAS Chairman's Decree also contains a pattern that regulates UPZ control in terms of coordination, guidance, harmonization, and information technology (IT) integration. The issuance of the BAZNAS Chairman's Decree is then accompanied by the provision of a virtual account to the UPZ in managing its finances or UPZ is given the flexibility to record its zakat management simply through a manual book.
- The second strategy is through optimizing the role of UPZ, especially in terms of multi-stakeholder cooperation between institutions. Multistakeholder cooperation in optimizing the role of UPZ involves at least five parties in the pentahelix cooperation strategy including the government, BAZNAS RI / Provincial BAZNAS / Regency / City BAZNAS, Religious Affairs Office (KUA), Pesantren, and Mosque / Mushalla.
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Strategy for Shifting Off Balance Sheet Funds to On Balance Sheet through Optimizing the Role of UPZ |
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