ARE ZAKAT INSTITUTIONS IN INDONESIA EFFICIENT AND PRODUCTIVE? YEAR 2018 - 2021 Salsabiilatul Ayniah K. S.
University of Airlangga
Abstract
Purposes: This paper aims to investigate the efficiency and productivity of zakat institution in Indonesia 2 years before covid 19 and 2 years during covid 19.
Methods: This quantitative research uses the data from a sample of 6 zakat institutions in Indonesia from 2018 to 2021. Measurement of efficiency using the Free Disposal Hull (FDH) analysis with production approach. The input variable is the cost of expenditure and the output variables are the collected zakat funds and the distributed zakat funds. In measuring efficiency, this paper uses Stata software. While the measurement of productivity using Malmquist Productivity Index (MPI) analysis with the DEAP 2.1.
Results: The results indicated that Yayasan Baitul Maal (YBM) achieved highest efficiency form 2018 to 2021 and Al-Azhar has the lowest efficiency. The productivity of 6 zakat institutions fluctuated from 2018 to 2021. Yayasan Baitul Maal (YBM) has an average productivity of 0,94, which means it has decreased productivity during 2018 to 2021. Dompet Dhuafa Republika (DDR) has the highest average productivity score of 1,25.
Conclussion and Suggestion:Can zakat institutions in Indonesia from 2018 to 2021 be called efficient and productive? The answer is not yet. Because the efficiency and productivity skor of the 6 zakat institutions form 2018 to 2021 are still fluctuating. This is due to unstable economic and social conditions due to the covid 19., so that the collection and distribution of zakat is hampered. This paper can be used as evaluation for zakat institutions to increase the value of efficiency and productivity
