ABSTRACT
This paper aims to analyse the characteristics of local government as a zakat collector in Aceh, Indonesia. In Aceh province, zakat can be collected by the government as original regional income in the local budget. This study uses primary and secondary data gathered from in-depth interviews and the audit board’s database. The interviews were conducted in June 2013 in Aceh at Baitul Maal and local administrative offices. Only 6 out of 23 local governments collect zakat. Data is analysed based on descriptive statistics and crosstab analysis. The paper provides evidence that most local governments did not collect zakat as original regional income and present the expenditure accordingly and explicitly. It is also found that the special allocation fund has a significant negative correlation with zakat collection, while significant differences are found between local governments that collect zakat in original regional income, budget surplus, assets, fixed assets and debt. Local governments that have not yet collected zakat as original regional income in their local budget can learn from those regions that have collected it. Some specific characteristics may influence regions that have collected zakat in their regional budgets.
