A

ctivists rejected a government's plan to centralize the collection and management of alms or zakat, arguing the move would end privately run alms institutions and disadvantage low-income people as recipients.

Juperta Panji Utama, secretary-general of the Zakat Movement for Indonesia, an alliance of alms institutions from across the country, said privately run alms institutions have so far been working effectively in collecting and managing alms from the community.

"The government cannot turn a blind eye to the fact that more people trust privately run zakat institutions, not state-run ones, to distribute and manage their alms," Juperta said.

In terms of collection, he said privately run zakat management institutions or LAZ could collect higher fund amounts, while in terms of distribution creativity, many could provide facilities for the poor, from free hospital care and schooling to economic empowerment programs.

"We have been helping the government in dealing with poverty. Please don't end private zakat institutions just because there's an opportunity to collect huge amounts of money from the community."

He said research conducted by the Public Interest Research and Advocacy Center in 2007 found the number of people highly interested in helping others was extremely high, but many raised doubt over the transparency of institutions managing their donations.

"We have proved we manage funds transparently. We always publish our audit for the public. Every single donator is informed on where their alms go," Juperta said.

A bill on the revision of the 1999 Zakat Management Law is waiting for deliberation at the House of Representatives. One main point in the draft, which causes concern among privately run alms management institutions, is the plan to centralize alms collection and management.

The Religious Affairs Ministry said the bill was proposed due ineffective alms management in the last 10 years. It also proposed the new law would only recognize state-run alms management agency Badan Amil Zakat (BAZ) as the only institution to manage the funds, from the national down to the subdistrict level.

Then religious affairs minister Maftuh Basyuni said in a meeting with the Regional Representatives Council Ad Hoc Committee late February last year that currently there was no clear relation between various zakat institutions. Some are under the coordination of BAZ, while others operate independently, he added.

He said the unclear relation makes it hard to map the alms' potentials and targets across the country, resulting in unequal distribution.

Separately, Ismail A. Said, president director of noted privately run alms institution Dompet Duafa, suggested the government consider the Indonesian Central Bank operation manner. "The Indonesian banking system allows private- and state-run banks walk side by side, growing and competing healthily. The Central Bank clearly positions itself as a regulator and controller. It doesn't play as an operator. Business roles are fully performed by both private and state-run banks," Ismail said. "We demand the government act fairly. Private alms institutions also build awareness among the community to pay for their zakat obligation."