Innovating zakat governance through good Amil governance (GAG): A structural policy model using DEMATEL-ANP in Indonesia

Abstract

Indonesia has considerable potential for zakat compared to other countries. However, its governance structure is insufficient, particularly in the recognition and professionalization of Amil (zakat managers). The Amil profession is considered inadequately recognized by law and insufficiently protected, primarily due to the absence of a comprehensive regulatory framework that undermines the overall effectiveness of zakat institutions. Therefore, this study aims to improve zakat governance in Indonesia by implementing and institutionalizing Good Amil Governance (GAG). It analyses 12 essential dimensions of GAG, pinpointing significant structural challenges and strategic priorities using the Decision Making Trial and Evaluation Laboratory (DEMATEL) and the Analytic Network Process (ANP). Through focus group discussions and comprehensive interviews, this study identified six dimensions as causes and six dimensions as effects within the GAG framework. The fundamental structural challenges include the absence of a comprehensive governmental policy on human resource management, inadequate professional competence among Amil, and insufficient certification systems. The strategic priorities emphasize the formulation of comprehensive HR governance policies, the implementation of targeted HR management systems, and the augmentation of capacity-building initiatives for Amil. Moreover, this study introduces an innovative structural policy model by combining DEMATEL-ANP to connect institutional governance with Amil welfare, a subject rarely explored in previous zakat literature. This study provides important recommendations for the government to ensure clear career paths and welfare schemes for Amil through various policies and regulations, as well as to enhance the role of Zakat Institutions in the national economy. This is because zakat institution regulations are still uneven across regions, requiring coordinated regulatory reform. Moreover, current zakat regulations only stipulate the percentage that may be treated as Amil costs, but do not broadly outline the career path for Amil in Indonesia. The results highlight the imperative for standardized governance innovations to improve the professionalism and sustainability of the zakat ecosystem. Future research should examine cross-national policy adaptations and institutional differences to improve and broaden the GAG model.