T

he enactment of Law No 23/2011 on zakat (alms) management by the House of Representatives has caused controversy during the 6th Zakat Forum (FOZ) national congress held in Semarang, Central Java, from April 17 to 19.

The party in favor of the act is led by the National Alms Agency (Baznas), while those against it were mostly members of the alms agencies established by individuals, foundations and local communities. Both are represented in the FOZ.

Arif Nurhayadi, director of the Central Java alms institution, Lazis, said many of the articles in the law were not clear and capable of multiple interpretations and thus could create implementation problems.

“Article 38 on alms management by mosques, associations and Islamic boarding schools (pesantren), for example, requires registration at the Baznas. Yet, there is no detailed explanation on how this should be implemented,” Arif said on the sidelines of the congress on Thursday.

The alms-management law was endorsed on Oct. 27, 2011 and consists of 11 chapters and 47 articles.

Among other things it stipulates that alms management is the authority of the government and the public is only allowed to participate with a government permit. It also stipulates that alms management be carried out by Baznas operating hierarchically from the central to regional levels.

The law, according to Arif, seemed to limit the number of zakat-management organizations. It required very strict conditions for the establishment of an alms-management agency. “This may discourage the establishment of new zakat organizations.”

The current number of alms organizations was not capable ofss handling the alms potential, he said. The existing organizations are only able to tap about Rp 1.7 trillion (US$185 million) last year out of the country’s potential of up to Rp 210 trillion.

“If it is aimed at increasing public transparency and accountability, we support it. However many agencies are not ready to be institutionalized,” Arif said.

He urged the government and the House to make the mechanisms and management of alms clearer.

Separately Baznas chairman Didin Hafidhuddin said it was time that zakat management in Indonesia was reorganized so alms organizations could become more accountable and easy to supervise. With an official record of alms institutions, a map on the distribution of alms to the poor could also be obtained to prevent overlapping distribution.

“This is not to strengthen the role of Baznas or stunt the others, but the spirit of the law is on how to collect alms officially so they can be utilized more transparently,” said Didin.

So far 19 alms agencies have been officially registered at Baznas, but there are hundreds of others at regional and national levels that have not been registered. “Those which have not registered, please register. We will not phase them out, only prevent them from being used for personal interests,” he said.

FOZ chairman Ahmad Juwiani said his institution would be neutral in dealing with parties in favor or against the alms law. However, he emphasized that every party should thoroughly understand the law.

He said a number of articles had the potential to be counterproductive. Article 41, for example, stipulates that a prison sentence and fine awaits unregistered alms organizations.

He said the law, in principle, was enacted to prevent alms organizations being used to raise funds for terrorism or crime.

“The spirit of the law therefore is actually good,” he said.