Governance of Baitul Mal Based on Good Corporate Governance

(Case Study at Baitul Mal of Bener Meriah Regency)

Abstract

The management of ZISWAF funds (Zakat, Infaq, Sadaqah, and Waqf) plays a vital role in improving the welfare of society, particularly in regions with significant potential for the collection of religious funds. The public’s trust in ZISWAF management institutions is largely influenced by the extent to which these institutions implement sound governance principles. Therefore, the application of Good Corporate Governance (GCG) is essential to ensure accountability, transparency, and effectiveness in both the collection and distribution of ZISWAF funds.This study aims to examine the extent to which the principles of Good Corporate Governance namely accountability, transparency, responsibility, independence, fairness, and sustainability are applied in the collection and distribution of ZISWAF funds by Baitul Mal of Bener Meriah Regency. Additionally, the study seeks to identify the supporting and inhibiting factors in the implementation of these principles. The theoretical framework is based on the GCG principles outlined by Sofyan, which emphasize the importance of transparency, accountability, responsibility, independence, fairness, and sustainability in organizational management. These principles serve as the foundation for evaluating the governance practices of Baitul Mal in managing ZISWAF funds. This research employs a qualitative descriptive approach. Data collection techniques include observation, in-depth interviews with Baitul Mal officials, documentation, and literature review. The data were analyzed qualitatively through data reduction, data presentation, and drawing conclusions. The findings indicate that the implementation of GCG principles in Baitul Mal Bener Meriah has been fairly effective, particularly in the aspects of accountability and transparency. However, challenges remain in achieving independence and sustainability in program execution. Supporting factors include clear regulatory frameworks and community support, while inhibiting factors involve limited human resources and suboptimal technological infrastructure.