Discussions on how to set had al-kufiyah, or the measurement standards on which authorities distribute zakat (alms) – based the socio-economic levels of individual recipients – have long been held among Islamic finance experts globally, with few satisfactory results on how to set those standards.
The had al-kifayah regulates, among other things, whether an individual is entitled to receive zakat or not based on the number of family members and dependents as well as the socio-economic context.
In Indonesia, the National Alms Agency (BAZNAS) has just attempted to set those standards for Indonesian zakat payers and it informed the public of the considerations behind setting these standards during a public discussion conducted on May 23.
According to BAZNAS strategic studies center director Irfan Syauqi Beik, in setting the had al-kifayah in Indonesia, the agency adheres to a number of elements commonly applied: how the individual pays for his or her food, clothes, home, domestic facilities, religious rituals, education, health and transportation.
“The seven elements are based on the decent living standards from the perspective of maqasid syari’ah [the intention and objective of Islamic sharia law application]. We determine the had al-kifayah value per family unit comprising one husband, one wife, one child attending elementary school as well as one child attending junior high school,” he explained.
The agency came up with a measurement unit based on the Central Statistics Agency’s (BPS) survey of average Indonesian family demographics, according to Irfan. He added that the agency had also complied with the government’s minimum basic education requirements in setting these standards.
Irfan said the agency had modeled Malaysia’s Selangor Zakat Agency (LZS), which has long been applying these standards as a basis on which it distributes alms to its recipients. There are, however, certain differences on how both agencies calculate their zakat distribution.
“The LZS calculates the had al-kifayah based on each family’s monthly expenditure, while BAZNAS calculates the basic life allowances each family needs to have a decent living,” he explained.
According to BAZNAS’ calculations, the average had al-kifayah in Indonesia amounts to Rp 3.01 million per family per month. On an individual level, the had al-kifayah amounts to Rp 772,088 per capita per month.
Furthermore, based on the agency’s study, the Indonesian province with the lowest had al-kifayah is Central Sulawesi, with Rp 2.844 million per family per month, followed by Jambi with Rp 2.833 million per family per month and Central Java with Rp 2.791 million per family per month.
Three Indonesian provinces with the highest had al-kifayah, meanwhile, are: West Papua with Rp 3.317 million per family per month, Papua with Rp 3.340 million per family per month and East Nusa Tenggara with Rp 3.36 million per family per month.
These standards can be used for zakat distribution on a national level.
Based on these findings, BAZNAS came up with the following recommendations on zakat distribution: for recipients who are really poor, whose monthly income is lower than the national average had al-kifayah (Rp 3.01 million per family per month), alms distribution should orient more toward a charity and emergency approach.
Second, recipients whose monthly income is equal to, or higher than, that national average number (between Rp 3.01 million and Rp 4.16 million per family per month) should be involved in more empowerment activities, such as entrepreneurship programs, financed by the zakat money.
BAZNAS member Nana Mintarti, meanwhile, said that the agency’s had al-kifayah standards were still flexible based on the socio-economic contexts of where each zakat recipient lived.
“In applying these standards, one must also adhere closely to other instruments such as the national zakat index as well as the village zakat index, both of which have been set by BAZNAS,” she said.
She also lauded the research as BAZNAS’s policy innovation breakthrough, demonstrating the importance of research-based policymaking to boost the quality of the national zakat management.
Spreading joy during Ramadhan
This month of Ramadhan, BAZNAS has also shared happiness with orphans and the poor who live in Jakarta.
On the sidelines of the public discussion, BAZNAS also launched a series of breaking-of-the-fast activities with children in need and orphans across Jakarta, in cooperation with private television station Metro TV.
The activities were conducted from May 23 to 25 in a mosque located in the Metro TV compound, involving a total of 1,800 of these children, according to BAZNAS leveraging division head Randi Swandaru.
The breaking-of-the-fast events also showcased three different speakers each day to give speeches to the children. These speakers include BAZNAS chairman Bambang Sudibyo and Metro TV director Suryopratomo.
BAZNAS also cooperates with Bank MNC to provide donations to the poor. These donations were also announced on May 23 in the MNC Financial Center building, Jakarta.
“MNC Bank, through its MNC Peduli charity project, cooperates with BAZNAS to express our social solidarity during the month of Ramadhan,” MNC Bank president director Benny Purnomo said.
The charity program was also attended by BAZNAS retail collection division head Fitriansyah Agus Setiawan, BAZNAS Ramadhan committee head Rulli Kurniawan, BAZNAS corporate social responsibility collection division head Iman Damara, along with MNC Bank’s board of directors and employees.
“With the improved welfare of people who live in our bank’s operational sites, we benefit along the way by getting a larger business share from them. Besides being a corporate social responsibility activity, this activity is also an investment for the nation’s future generation and the future of our bank itself,” Benny said on the sidelines of the event, which was enlivened by Quranic recitations and religious advice.
Benny said he hoped the annual activity could stimulate public awareness in donating materials to help ease the suffering of their fellow human beings, aside from doing so for formal purposes only.
“We hope that the donations and religious advice can truly benefit the marginalized people instead of just helping us fill our annual CSR reports. This is why we have chosen to work with BAZNAS, which is experienced in moderating social inequality,” Benny said.
Fitriansyah said that hopefully MNC Bank’s charity activities could boost zakat collection in Indonesia.
“I hope this activity can be a model for other companies and banks, so they can donate money to BAZNAS to help mitigate poverty in Indonesia,” he said. (Masdar)
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