Legal Review Of Zakat Implementation In Sharia Financial Institutions

Abstract

 This study aims to examine the implementation of zakat in Islamic Financial Institutions (IFIs) in Indonesia from a juridical perspective. This research employs a normative juridical method with legislative and conceptual approaches. The findings indicate that the implementation of zakat within IFIs holds significant potential for improving community welfare and reducing poverty. However, several legal issues need to be addressed, such as the absence of specific technical regulations governing the role of IFIs in zakat management, the potential overlap between social and commercial functions, the lack of standardized management and reporting of zakat, issues surrounding the conversion of zakat into productive forms, and the lack of synchronization among the Financial Services Authority (OJK), the National Zakat Board (BAZNAS), and the Ministry of Religious Affairs. To overcome these challenges, it is necessary to formulate specific regulations, strengthen institutional capacity, apply good governance principles, enhance institutional synergy, and increase zakat literacy.