Contribution of Zakat for Regional Economic Development Agus Purnomo, Galuh Nashrulloh Kartika Majangsari Rofan, Atike Zahra Maulida Universitas Islam Kalimantan MAB Banjarmasin, Adhyaksa Street, Number 2, Kayu Tangi, Banjarmasin City, ZIP Code 70122, Indonesia. Keywords: Zakat; Development; Regional Economy Abstract: Islamic economic development shows a significant increase in Indonesia. State revenue comes from tax payments and zakat payments, therefore these two items can sustain the development of the economic development of the community. Tax and zakat funds if collected and distributed in accordance with sharia principles can help economic growth and the development of infrastructure facilities needed by the Indonesian people. This study discusses the contribution of zakat to regional development in 2015 to 2017. This research is a qualitative research using descriptive analysis. Primary data in this study are data obtained from BAZNAS of South Kalimantan Province in Banjarmasin, while secondary data is obtained from reports on zakat fund collection in 2015-2017, books on zakat, scientific journals, articles and others. Data collection in this study uses interview, observation, literature study and documentation techniques. The results of this study conclude that zakat funds are distributed in the economic, education and health sectors as follows: 1) in 2015 zakat funds amounted to Rp. 665,332,320, the funds were empowered by the community by 44% for economic activities with a nominal amount of Rp. 294,300,000. This activity is in the form of additional business capital. 2) The distribution of education funds has increased from 2015 by 0.45% and in 2016 the contribution of education funds increased by 32.3%. In 2017 economic activity experienced an increase of 8.43% from the previous year. 1 INTRODUCTION others that have been regulated in the law. Clarity becomes a necessity so that the purpose of making Zakat is an instrument of state income as the law can be achieved. The National Zakat Agency exemplified in the time of the prophet Muhammad (Baznas) is an official body formed by the SAW. Income from zakat can be used as state government based on the Republic of Indonesia's income, so it is useful for financing and economic presidential decree No. 8 of 2001 and confirmed by development needs both locally and nationally (Ali Law No.23 of 2011 concerning the Management of Sakti, 2017). In zakat there is a system of obligations Zakat. Baznaz as an institution authorized to carry that are given to people who need it, with the out zakat management nationally, which has the following benefits: duty and function of collecting and distributing 1. Meeting the needs of the poor Zakat, Infaq and Sedekah (ZIS) at the national level 2. Reducing economic inequality (Kaaf, 2002) . 3. Suppress the number of social problems, such as Zakat is collected from several types, compiled crime, prostitution, homelessness, beggars and by the provincial/city BAZNAS, Rumah Zakat and others. LAZIS with the same purpose, namely to prosper 8 4. Maintain the balance of people's purchasing groups as written in the Qur'an. It is compulsory for power, so that the business sector can run well. every Muslim to issue 2.5% of zakat if he has 5. Encouraging people to invest long-term (in the sufficient Nisab. So far, state revenues have come form of reward by fulfilling the obligation of from tax payments (Soemitro, 1988) and zakat zakat), does not accumulate wealth. payments, therefore these two items can support the In the Indonesia’s economic system, state development of the community's economic revenue generated by several sectors, among others, development. taxes, SBN (Certificate of State Value), zakat and The collected zakat will be managed by BAZNAS/LAZIS/Rumah Zakat and then distributed 441 Purnomo, A., Rofan, G. and Maulida, A. Contribution of Zakat for Regional Economic Development. DOI: 10.5220/0009022404410447 In Proceedings of the Borneo International Conference on Education and Social Sciences (BICESS 2018), pages 441-447 ISBN: 978-989-758-470-1 Copyright c 2020 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved BICESS 2018 - Borneo International Conference On Education And Social to the poor who need it with the aim of community namely that the assets issued by zakat will be a welfare. Zakat is required for those who have excess blessing, increasing, developing and increasing, holy property. The advantages of these assets are marked and clean (good). In the Qur'an and as-Sunnah there by the attainment of zakat which is equivalent to 85 are several words that are often used for zakat, grams of gold. If someone has assets worth 85 grams namely Sadaqah (true), infaq (issuing something of gold or more, then he must issue zakat (Nawawi, good besides zakat) and rights (zakat is the right of 2010). Distribution of zakat funds is carried out in the mustahik or recipients) (Hafidhuddin, 2002). various sectors, such as economics, health and In the zakat management guide book (Zakat, education. 2017), fiqh experts agree that zakat is obliged to The study of zakat as a system of state revenue people who are independent, Muslim, baligh and contributes a large portion of the Islamic economic intelligent, knowing that zakat is obligatory, male or system. So important is that zakat is placed as the female. In line with the provisions of Islamic third pillar of Islam, after prayer, preceding the teachings which always set common standards on obligation of fasting and pilgrimage. The every obligation imposed on the people, then in contribution of zakat in Indonesia's economic determining the property to be the source or object growth to finance Indonesia's economic of compulsory zakat must also fulfill some of the development in the form of education, health, following conditions: facilities and infrastructure, and the economy. State 1. Full property (al-milku at-tam) revenues obtained from zakat payments are 2. Develop (name). empowered to finance various state expenditure 3. Simply ratio. items. Based on this, the optimization of zakat is a 4. More than basic needs. strategic potential to support Indonesia's economic 5. Free of debt. development in realizing real prosperity, namely 6. It's been owned one year. physically and mentally (Hafidhuddin, 2002). 7. Kinds of Zakat The role of zakat is very important in the effort to empower the economic potential of the people. So 2.2 Purpose of using Zakat Funds that the implementation can be effective so that in According to Sharia the end if zakat can actually run as expected, namely the achievement of social safety nets and the rotation The purpose of the zakat funds is to finance various of the economy, encouraging the use of idle funds, state expenditure items, which are indeed required of encouraging innovation and the use of science and them (the Muslims), when the conditions of Baitul technology and harmonizing the relationship Mall are empty or insufficient. So there is a binding between the rich and the poor. In the end the ideal goal of being allowed to collect zakat, which is the life of the people will naturally come true. Based on expenditure that is already the duty of the Muslims, the explanation above, the writer is interested in and there is a state of vacancies in the state treasury. conducting research on "Contribution of zakat funds Zakat funds must be used for the purpose of benefit in regional economic development." This research (Malik, 2001). Expenditures in question are was conducted in Baznaz, South Kalimantan expenditures needed for the development of a province. modern economy in the view of Islamic financial economics. The primary needs of the people as a whole are security, health, education, and 2 THEORETICAL REVIEW infrastructure facilities to support Indonesia's economic growth. While the needs of Muslims for 2.1 Definition of Zakat the education, health, and facilities of the infrastructure are (Zallum, 2002): Zakat according to language comes from the word 1. Financing jihad related to the formation and zakaa, which means holy, clean, good, increasing, training of troops, procurement of weapons, and developing and blessing. As the Arabic phrase zakaa so on. al-jar’u, it means that the tree grows and develops. 2. Financing for the procurement and development Whereas zakat according to is certain taking from of military industries and supporting industries. certain assets, according to certain characteristics to 3. Development to meet the basic needs of the be given to certain groups (Dahlan, 1999). The needy, the poor, and Ibnu Sabil. relationship between the meaning of zakat in terms 4. Financing for salaries of soldiers, judges, of language and terms is very real and very close, teachers, and all state employees to carry out the 442 Contribution of Zakat for Regional Economic Development arrangement and maintenance of various benefits distributed both in the form of productive goods and of the people. consumer goods has directly increased the income of 5. Financing for the provision of welfare or public the per capita community. In the short term, zakat in facilities such as the construction of facilities and the form of consumer goods can meet basic needs. infrastructure for the development of the modern Whereas in the long run, zakat can create new economy. economic resources, along with the increase of 6. Financing disaster management and events that people who have the ability to entrepreneurship. afflict the ummah/people, while property at Zakat that has been distributed provides a micro Baitul Mall is missing or lacking. effect in the form of increasing income per capita 7. Health financing for people who cannot afford and increasing the purchasing power of the people. such as: fakir, miskin, yatim, piatu, ibnu sabil, Furthermore, the existence of this micro effect will convert.