Efficiency Analysis of Zakat Intitutions in Indonesia by using Data Envelopment Analysis (DEA)

Zakat is one of the five pillars of Islam. Zakat has vertical and horizontal relationships where vertical relationship to Allah SWT and horizontal relationship that serves as the distribution of wealth and income. Indonesia is a country with the largest number of Muslims in the world so the potential of ZIS Indonesia is very large. Zakat institution has an important role in zakat management. This study discusses the performance of zakat institutions by conducting an analysis based on the Data Envelopment Analysis (DEA) in BAZIS DKI Jakarta and BAZNAS Bogor, Depok, Tangerang, and Bekasi. This study aims to analyze the performance of BAZNAS and BAZIS in Jabodetabek by using DEA & to know ranking of efficiency of zakat institutions. Result from this study shows that the average performance by using DEA is 0.642 and 0.752 in 2016 and 2017. In 2016 there were 2 DMUs that were already efficient, namely BAZIS Administration of South and East Jakarta. While, in 2017 there were 4 DMUs that were already efficient, namely BAZIS Administration of South and East Jakarta and BAZNAS Bekasi and Tangerang.