CHAPTER I

INTRODUCTION

A. BACKGROUND

The Zakât is institutionalized in Islamic law, on the Syari’ah, which constrains every one of Muslim people to give the equivalent of 2.5 percent of their wealth to the poor. Islamic law provides a complex calculus to determine the Zakât. The Islamic law also requires individual of Muslim give food to the poor. The institutionalization of the Zakât makes Islam as the first welfare state in history in which redistribution of income and wealth was a foundation of state and government.
In Islamic tradition, there are four principles that should be followed when rendering the zakat. Every Muslim must declare his intention to render the Zakât. Zakât is not merely a matter of defying the tax authorities, it is submitted to the wishes of God; distribution must be in kind—if one's wealth is in cattle, one must pay in cattle rather than in money—though this principle is not rigorously followed in Islamic history; the Zakât must be distributed in the community within which it is exacted.

Allah said in the Qur’ân, Surah At-Taubah: 60;

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Meaning: “ Zakât is for the poor and the needy, and those employed to administer (the fund). For those whose hearts have been (recently) reconciled (to the truth), for those in bondage and in debt, in the cause of Allah and for the wayfarer (thus is it) ordained by Allâh, and Allâh is full of knowledge and wisdom” [1]

In Indonesia, Zakât is understood as the obligatory for every Muslim who has the richness (Mâl) and fulfills the requirement. Since 1993 until today, Zakât has developed into the extraordinary achievement. This achievement was influenced by the successful of Lembaga Amil Zakât (Religious Alms Agency), in raising the awareness of Zakât in Indonesian society.

The government had been issued the Zakat Law (UU 38 Th. 1999). This law can be functioned as the law principal to make the innovation in zakat. Zakat in Indonesia also can be as the Tax charged income (Pendapatan kena Pajak) -reductor. In example, if we work in a corporation or company, we will receive the salary every month.

The corporation actually has the Baitul Mâl (Home of Richness), and it take 2.5 percent of our salary as the professional Zakât. Baitul Mâl can report the Zakât bill to the Directorate General of Tax and this bill will be recognized as the Reductor of Pendapatan Kena Pajak (Tax Charged Income). Bank DKI Syariah is one of the corporations that implement the rule of professional Zakât for its employees through UPZ (Zakât Management Unit).

We understand that Zakât is the annual obligatory. But, according to the general agreement of MUI, for the simplicity, Zakât that originated from professional income such as salary, professional fee of the lawyer, doctor can be deducted immediately after receiving and can be accumulated annually. As the Syari’ah institution, Bank DKI Syari’ah needs to show a good model how does the Syariah based corporation should be. In this place, allocation of Zakât usually is used for community development, poverty reduction, student scholarship etc.

This program is managed as company’s social responsibility. As usual, CSR fund is taken from earning of corporation. Corporation allocated a number of funds (as ruled by law) to give benefits to society especially who lives around the corporation. Generally, definitions focus on how companies manage their core business to add social, environmental and economic value in order to produce a positive sustainable impact for both society and for the business. There are common themes amongst responsible companies:

1. The Board is committed to and promotes corporate social responsibility.

2. Local laws and tax rules are followed.

3. Stakeholders’ opinions are taken into account.

4. There are high labor standards and measures to protect the environment.

5. Their economic, social and environmental performance and impact, is monitored and reported to the public.

6. There is a high standard of employee training and steps aimed at raising awareness of the company’s responsibility.[2]

In the last 10 decades, the corporation that involved in social activity was so many. And in last 2 years, the corporation tended to rule the obligatory of Zakât deduction from salary. Syari’ah institution is the pioneer in this field. Finally, after considered lack and benefits, there are many conventional corporation also ruled Zakât deduction from Muslim employees. Even in last present time, the intensity of social activity had done by corporation shows the significant increasing.

At overview, the trend of it in Indonesia is similar with the trend in foreign country. A preliminary research hold by PIRAC in 2001 informed us, it is known that over US $11, 5 billion has been allocated by the company for social activity. This fund was originated from 180 corporations and was used for 279 kinds of social action. Totally, the average of social fund that has been allocated by the corporation in 2001 is approximately Rp. 640 billion. It is equivalent with Rp. 413 billion each program. [3]

This is good news for the poor people. At least, they do not need be afraid with their future. We are proud by seeing this phenomenon. In the capitalism era, actually, there are still many institutions that committed with community empowering especially in our country. The programs that hold in 2001 have shown us the general description of corporation voluntary activity model:

1. Direct Intervention Model.

The corporation gives the fund or held its social activity for society directly. The corporate officers go to the needy peoples, encourage them and help them both material and non-material. Usually, before the corporate officer goes to that place, they do the preliminary observation. One of the purposes is to make sure that place, which will be visited, is the real poor society and need help from corporation. At the day of action, some officers give something with the big advertisement. In other side, this program is a kind of white propaganda for the corporation itself, to show to public that the corporation takes care in social activity.

2. Indirect Intervention Model.

This second model is the general model that has been used in many industrial countries. Commonly, the big corporate such as Ford, Rockefeller etc have the foundation for spreading its social fund. We often heard that when the disaster of cancer happened in Africa, Ford Foundation is one of the foundations, which help Africa by providing many facilities. In Indonesia, we knew some of foundations that established by corporation such as: Yayasan Dharma Bhakti Astra (Dharma Bhakti Astra Foundation), Yayasan Coca Cola Company (Coca Cola Company Foundation), Yayasan Rio Tinto (Rio Tinto Foundation), Yayasan Sahabat Aqua (Aqua’s Friend Foundation), GE Fund etc.

Besides build the Foundation, some corporations in Indonesia begin to adopt the system that involved both company and employees. Those corporations encourage its labor organization and retirements to take a part in social activity. The corporations give permit to its employees to use a part of their timework for social action. Two corporations in Indonesia that determine this model are Citibank through City Bank Peka and General Electric through GE Fund. Bank DKI Syariah probably uses the different method to manage its professional zakat fund. That is why the writer wants to know what and details. So, the writer chooses PT. Bank DKI Syariah for the place of research.

3. Linkage Program.

The corporation makes relationship with other institutions for managing its charity fund and organizing its social work, such as NGO (Non Government Organizations), Government Institutions, Universities, and Mass Media etc. Through collaboration such as this, hopefully the corporation will not be busy by that program and the program that is running will be more optimal because competence people control it. The corporation usually requires the report of activity to assess the quality so that it can be concluded about final result. The corporation shall consider for helping it more or not. The writer also wants to know how the model of collaboration of Bank DKI Syariah in cooperating with other institution in managing Zakât fund.

B. SUBJECT LIMITATION AND FORMULATION

(1) Subject Limitation

The writer limits the research in 2 (two) parts:

a. In this paper, the main topic is professional Zakât. The writer specifies this term as the Zakât that had been deducted from routine salary of Bank DKI (Syari’ah)’s employees. The portion is 2,5% from their net salary. However, the writer will not discuss about money. The writer discusses about the application of management in managing the fund.

b. The writer discuss about Fundraising process and Distribution process of Zakât fund from the deduction of employee’s salary. Period of process is during 2006 yearbook.

(2) Subject Formulation

In this case, the writer proposes some research questions:

1. How does Bank DKI Syari’ah through its UPZ collect the Zakât fund?

2. How does UPZ Bank DKI Syari’ah act the procedure such as socialization process, mechanism of withdrawal?

3. What does the professional Zakât fund distribute for?

4. What program has been running so far?

C. OBJECTIVES OF STUDY

In this field, the writer’s purposes in this paper are as follows:

1. The writer wants to know more about management of professional Zakât in company especially at Bank DKI (Syari’ah).

2. The writer wants to understand better about collecting process of professional Zakât fund that involved company and employees

3. The writer wants to know about distribution model after fundraising of professional Zakât especially at Bank DKI (Syari’ah) as the one of the Syari’ah Bank in Indonesia.

4. The writer wants to try to correlate between potential of professional Zakât and its possibility to reduce poverty and social problems.

D. BENEFITS OF STUDY

The benefits of this paper are enough many. But, in this proposal, the writer will mention generally as follows:

1. Benefit for university academically; this paper will be useful in knowing the development of professional Zakât especially in Bank DKI Syari’ah included the short analyze as the reference in campus. This paper can be referenced by the next generation if they interest in this area. At least, this paper is the academic reference for the user.

2. Benefit for the company; this paper is the constructive critic for the management of Bank DKI Syari’ah. In this paper, the writer will write analyze according to the material data from company. Hopefully, this can be as the policy reference for the Zakât officer for improving the job further.

3. Benefit for the writer; this paper is the preliminary research. In next, this can be used as the basic if the writer will do research again in this area. Other benefit is; this paper is the copyright of writer. All data and analyze is the writer academic property.

4. Everybody who wants to know about the professional zakat can read this paper, and probably they can take little knowledge from this.

E. RESEARCH METHODOLOGY

(1) Approach And Type of Research

In this research, the writer uses the descriptive approach. While, the research method is the Qualitative method [4]. As the writer knows, the qualitative research has the design that is different from quantitative research. In qualitative method, the writer does not manipulate the condition of research and see the phenomenon. The result cannot be generated as the uniquely. The writer observes, makes note, analyzes, and provides the results in real condition.

(2) Data Source.

The writer has two sources in conducting research:

a. Primary source. This data is collected from the officer of Bank DKI Syari’ah as the research object. It can be from interview and observation directly and by real time.

b. Secondary source. It is collected from indirect sources such as library study, textbook, journals, research center, mass media etc.

(3) Technique of Data Collection

In doing this research, the writer will do:

a. Observation. The writer does this way to get data about related topics and do see the overview, probably there is a synchronize between ideal condition and real condition

b. Interview. The writer will do this way to get data directly. Specifically, the writer will contact the officer of Bank DKI Syari’ah who is related in managing professional Zakât. The writer will interview the officer of UPZ. After that, the writer will make the transcript and will be enclosed at the paper.

c. Book Reference. The writer uses this way to guarantee the accuracy of analyzes. For this, the writer will read deeply the books related with research, management theories, financial management and laws.

d. Make the supported documents. The writer will collect and copy the supported documents such as financial statement, work plan of Zakât Management Unit of Bank DKI Syari’ah and its administrative documents, information from Internet and other.

(4) Data Analyze.

In this paper, the writer will analyze by qualitative approach. The writer will be more pressure about content analysis according to Syari’ah Law. Data are enclosed here contains interview transcript and supporting documents. The analyze will not be out of this context. The writer as best as possible tries to give a simple analyze and shows that his analyze can be accepted as the science.

The result cannot be generalized. The writer raises this issue because of uniquely. The term of professional Zakât has been booming in last years. Therefore, the writer wants to try and learn deeper in this term.

F. TABLE OF CONTENT

Chapter 1 INTRODUCTION

In this chapter, the writer explains the background, subject limitation, objective of study, benefit of study, research methodology that covers sub part: approach and type of research, data source, technique of data collection, and data analyze.

Chapter 2 BASIC FOUNDATION

In this chapter, the writer tries to show several theories that related to professional Zakât. The theories contain definition of Zakât, basic law of Zakât in Islam, corporate financial management that pressure about balance sheet as the tools of control, philanthropy practice in Indonesia that contains philanthropy at corporation, Zakât as the part of philanthropy, about professional Zakât and its application and role of professional Zakât.

Chapter 3 PROFILE

In this chapter, the writer explains the profile of BANK DKI SYARIAH and its UPZ (Zakât Management Unit). The writer begins to write history, development, achievement, product and service and some other things.

Chapter 4 MANAGEMENT OF PROFESSIONAL ZAKÂT

AT BANK DKI (SYARI’AH)

In this chapter, the writer explains the process of management of professional Zakât at Bank DKI (Syariah). The writer starts to explain Fundraising process (contains agreement between company and its employees, mechanism of withdrawal, and problems during fundraising process. Second, the writer explains about distribution model of Zakât fund (contains planning program, company policies about Zakât, program that supported by Zakât, collaboration with other, problems during process. This chapter is end by the writer opinion and analyze.

Chapter 5 CONCLUSION AND RECOMMENDATION

In this chapter, the writer tries to make conclusion after observes and analyze the phenomenon. The writer also gives the recommendation in order to development of professional Zakât in company especially in Indonesia.