ABSTRACT
The legitimacy of corporate zakat interpretation and imposition is not an issue in Indonesia's implementation. However, channeling the corporate zakat must be examined since it relates to the subjects’ views on zakat bureaucratization in Indonesia. This chapter examines where Islamic commercial banks distribute their corporate zakat: do they directly distribute it to zakat beneficiaries or channel their zakat payments through zakat collector agents? Also, the existence of enabling laws and regulations that facilitates the administration of zakat, such as providing tax deduction or cashback on corporate zakat paid for corporate social activities, will have an additional stimulus for Islamic commercial banks that have not decided to pay corporate zakat. This chapter reveals that Islamic commercial banks acknowledge the state's role in administering zakat in Indonesia, especially regulation and supervision. However, there are reservations among some Islamic commercial banks that do not have their zakat collector agency regarding the National Zakat Collector Agency's role as the leading zakat collector. This reservation perpetuates the perennial debate on the extent of state intervention in the zakat administration in Indonesia.
