IMPROVEMENT OF SOCIAL WELFARE THROUGH OPTIMIZATION OF ORGANIZATION OF ZAKAT MANAGEMENT IN INDONESIA

Abstract

The presence of zakat institutions in Indonesia known as Organisasi Pengelola Zakat (OPZ)/the Organization of Zakat Management serves as a medium for muzakis in distributing zakat in which OPZ channels it┬á to mustahiks systematically and recordedly. It means, in this case, OPZ plays a role to ensure the equal distribution of zakat to those who are eligible to receive zakat so as to support the achievement of the purpose of zakat for the social welfare. On the other hand, the current reality as revealed above, zakat is still much given directly by muzakis to Mustahiks (not via OPZ). This study aims to explore the optimization of OPZ in managing zakat in order to achieve prosperity in Indonesia. The research method used is descriptive explorative. This indicates that there is a need to optimize the role of OPZ as an important institution to manage zakat. Strategic steps that can be done is with the program of ÔÇ£picking up the ballÔÇØ to muzakis, cooperation with educational institutions, use of technology, and transparency in financial report. If OPZ is optimal in managing zakat then the purpose of zakat to make people prosperous can be achieved. By achieving prosperity, poverty can be minimized because of the equal distribution of income. Thus, zakat becomes a potential financial instrument in fiscal policy in Indonesia.