Analysis of Efficiency for Zakat Management Organization in Indonesia: A Comparison Study of Super Efficiency and Free Disposal Hull

This research aims to analyze the efficiency level of fourteen Zakat Management Organizations (ZMO) in Indonesia. This study uses a quantitative approach with the method of Free Disposal Hull (FDH) and the Super Efficiency (SE) method. Socialization Expense, Operational Expense, and Salary Expense are the input Muhamad... Analysis of Efficiency... Page 148 Hayula, P-ISSN: 2549-0761, E-ISSN: 2548-9860 variables, while zakah fund collection and zakah distribution become the output variables. Empirical findings show that ZMO Corp 4 has the highest efficiency level, which analyzed through both methods of FDH or SE. ZMO managed by the government is the most efficient ZMO compared to the others who managed by private group and social organization. Total Potential Importance (TPI) shows that the output variable that requires the most significant adjustment is the zakat distribution, which is 12.66%.


Introduction
Some Zakat is a social-economic instrument in Islam that is oriented towards providing benefits to others (Huda, 2016:112). Zakat is one of the appropriate instruments to alleviate poverty not only within the scope of Muslim society but also within the scope of a country.
Zakat managed by Zakat Management Organization (ZMO), especially those with formal legal force, would have several advantages (Hafidhuddin, 2002:126) include: (1) Ensuring certainty and discipline of zakat payments, (2) Maintaining feelings of emphathy of mustahiq when dealing directly in receiving zakat from muzakki, (3) Achieving efficiency and effectiveness, as well as the right targets in the use of zakat assets according to the existing priority scale place and (4), Representing the syiar of Islam in the spirit of Islamic governance. The role of Amil in managing ZMO affects the effectiveness and efficiency of the ZMO. Every ZMO must develop performance management and measurement as an effort to oversee the accountability of the ZMO (Noor et al., 2012).
The ZMO continues to develop both in terms of collection and distribution. However, there is still a gap between the potential and realization of the zakat collection. Based on the reported data, the potential of zakat collection in Indonesia has reached 233.8 trillion, while the realization of the collection only covers about 4% of the potential (BAZNAS, 2021:48). This is due to the distrust from the public towards the ZMO so that the muzakki prefers to channel their zakat funds by themselves. One of these problems can be overcome by ensuring the efficiency of ZMO in managing zakat.
Efficiency is essential for an entity to evaluate and make strategic decision.
Recognizing the efficiency of an entity can be related to how the company achieves its goals (Ali & Ascarya, 2010). The concept of efficiency can be interpreted as the ratio between output and input. The more output resulted from one input will result in a relatively high level of efficiency. According to general economic theory, an entity can be concluded as efficient when it can minimize production costs (input) to produce a certain amount of production (output) or maximize the amount of output by using available production sources.
In the concept of Islamic economics, efficiency is an effort to achieve the purpose of attaining maqashid sharia. In Islam, efficiency is defined as producing or practising something in the right way, with a fair portion, and not excessively.
The concept of efficiency in the ZMO describes how efficient a zakat management organization in managing and distributing existing zakat funds. The level of effectiveness and efficiency that ZMO shows become one of the community's assessments towards ZMO performance. The level of efficiency of an institution is an exciting aspect to study, including the level of efficiency at ZMO. Several studies examined the level of efficiency of ZMOs. Al-Ayubi et al. (2018) employ the DEA technique to explore the efficiency level of zakat management with socialization expense data, the number of volunteers, the number of zakat funds collected, and zakat distribution as input and output variables. On the other hand, Human Resource Management is an essential part of organizational management. The organized HR management will determine the success of the organization in the future (Rozalinda, 2016).
This study aims to measure the level of efficiency of Zakat Management Organizations (ZMO) in Indonesia through quantitative methods with particular input and output variables using two analysis techniques: Free Disposal Hull (FDH) and Super Efficiency (SE). The use of the Free Disposal Hull analysis technique can provide a more excellent estimation rate of efficiency. At the other hand, Super Efficiency approach is a more complex method that provides a more detailed value of efficiency in order to indicate rating to each object. Based on the Decree of the Minister of Religion Number 333 (2015:5), ZMOs in Indonesia can be established by Islamic-based organizations, Islamic-based foundations, and Islamic-based communities. According to their establishment, this study divides ZMO into three groups: ZMO established by the government, corporations, and social organization. This is to make it easier for researchers in analyzing the ZMO group. In addition, ZMO has a different way of managing zakat based on its affiliation (their establishment). Then, the methods of Super Efficiency and Free Disposal Hull are used to compare and see which ZMO Group has the best efficient value.
Evaluation of zakat management organization would affect the level of efficiency of zakat, and is a crucial aspect of zakat. That effect might include that zakat as an Islamic financial instrument achieving its objectives of socio-economic justice through the wealth distribution mechanism. Through implementation of effective and efficient zakat management, the main goal of the zakat can be achieved, which is to provide a multiplier effect in a multidimensional manner for the welfare of the wider community.

Research Method
This study uses a quantitative approach with two methods, namely Super Efficiency (SE) and Free Disposal Hull (FDH). These two techniques are the development of the Data Envelopment Analysis (DEA) analysis method where each method has a broader range of efficiency values so that a more comprehensive ranking order can be derived from each research object. The comparison of the two methods is carried out to see the efficiency value of each ZMO group.
Free Disposal Hull analysis technique is a non-parametric efficiency measurement technique that is considered as generalization of the DEA (Rusydiana, 2019). Free Disposal Hull will produce a broader average of efficiency estimate than DEA (Tulkens, 1993). This efficiency measurement is estimated by looking at the extent to which the production point of a particular Decision-Making Unit (DMU) to the efficient limit point. Efficiency scores are calculated using a scale between 0-1 or 0-100%. The value of less than 1 (DMU <1) indicates that the DMU is inefficient compared to the other units (Avkiran, 2004).
The Super Efficiency method is a measure of the strength of efficient units that is utilized to rank DMU units as the object of observation (Ruysdiana & Hasib, 2020). The Super Efficiency method allows the efficiency of the object being observed to have a value of more than 1 or 100% (Andersen & Petersen, 1993). This method is used to make a ranking of the DMU unit, which is the object of the research.
The comparison between Free Disposal Hull and Super Efficiency methods in this study is used to determine the level of efficiency of each ZMO when the DMU value is limited and unrestricted. The use of the Free Disposal Hull method provides an efficiency value of one and less so that the ZMO efficiency value seems more efficient with a smaller value. Meanwhile, when using the Super Efficiency method, the efficiency value of the DMU can be more than 1 to infinity, so that the ranking of each efficiency value can be examined. When the ZMO efficiency value is limited using Free Disposal Hull and not determined by the SE, it will provide a comparison of the efficiency level of the ZMO.  Source: Compiled by author (2020) The super-efficiency analysis software used in this study is Banxia Frontier Analyst 4.0. Meanwhile, the Free Disposal Hull data analysis in this study used MAXDEA software.

Descriptive Statistic
The result begins with a descriptive statistical analysis that further can be used to analyze each method's efficiency. Operational expense, socialization expense and salary expense variables become input variables, while zakat fund and zakat distribution are output variables in this study. The average, minimum, and maximum values of each input and output variable can be seen in Table 2 below. In the end, this policy will show the extent of the efficiency level of the ZMO. Table 3 below describes the level of efficiency using the Free Disposal Hull during the period of 2014-2018. From these results, it can be assumed that ZMO who has a score of 1 on the measurement of the level of efficiency indicates its ability to optimize the input combination for its output production. Conversely, if the result score is less than 1, this suggests that the ZMO is not efficient, which means that the ZMO has not been able to optimize its input variables to produce maximum output production.

Efficiency Result of Free Disposal Hull
This study measures the level of Free Disposal Hull efficiency based on the ZMO classification according to the type of ZMO. In this study, ZMO is grouped into three groups; ZMO managed by the government, corporation, and social organizations. ZMO managed by government not only acts as the regular ZMO, but also has role as a supervisor for other ZMOs. Meanwhile, ZMO managed by a corporation is the ZMO established by private companies. Social organization ZMO is the ZMO managed by a social organization.  (2020) According to the result in Table 3 will be an increase the output of less than 1%. On the other hand, the IRS condition indicates that a one percent increase in the input will increase the production for more than 1% (Al-Ayubi et al., 2018).    Table 5 shows the measurement of the ZMO efficiency level using the Super Efficiency method during the period of 2014-2018. This research was conducted based on the ZMO classification based on the zakat management group. The results of the analysis in    indicates that every additional 1% output will result in more than 1% input.

Efficiency Results with Super Efficiency and Free Disposal Hull Methods
Following the background of the research described earlier, this study compares the efficiency of ZMOs in Indonesia using Super Efficiency and Free Disposal Hull methods.
Each method has different characteristics so that the comparison of the two methods produced data results, as shown in table 7 below: In terms of distribution and utilization of zakat, ZMO Corp 4 has various programs, namely: Economy (12 programs), Health (9 courses), Education (10 programs), Social Humanity (13 programs also pays attention to the other six asnaf groups. Sources: Data arranged by Author (2020) It can be seen from the Table 8 above, the average efficiency ranking from the data process using the Super Efficiency method for ZMO established by the government group is the most efficient among other groups. This result is not much different from the results of the analysis of the Free Disposal Hull method. ZMO managed by the government is the group with the highest level of efficiency, followed by the corporate and social organization groups. The efficiency of ZMO managed by government is because the primary activity or main business at the organization is to manage zakat funds. Apart from that, ZMO Government can also be a facilitator and regulator for other ZMOs. The main segments of ZMO Government are officials and employees in the government-related such as officials, bureaucrats, civil servants in the district/city governments with a payment mechanism for zakat (zakat maal). The payment can be done by directly deducting the salaries with the approval of the civil servants or direct payments. It is voluntary by the civil servants who concerned. In reality, not all civil servants distribute their zakat through ZMO Government, and ZMO Government also receive zakat paid by the general public. ZMO Corporate ranks second in the efficiency of zakat fund management, reflected in the YBM PLN ranking as being the best in terms of ZMO efficiency. Furthermore, ZMO who is in the third rank is the ZMO managed by social organization group. ZMO from this group is generally established by social organization groups whose goal is to manage zakat funds. ZMO in this group is usually spread across Indonesia. Each region has branch offices of some of these ZMOs. The distribution of branch offices of several ZMOs is to generalize the management of zakat so that it is not only focused on one particular area. However, some of these ZMOs are still not efficient in managing their zakat funds. The number of branch offices in the regions can provide relatively high operational expense.
Unlike the ZMO in the corporate group, where in the corporate ZMO the stakeholders can easily collect zakat funds from their employees, ZMOs from social organization groups might collect zakat funds from the wider community. However, the muzakki they serve are not sure the same as the corporate ZMO. Muzakki who comes from the ZMO social organization group is generally from the household or entrepreneur. The broader distribution of society included can cause the number of muzakki and the collection of zakat funds from this group to have a smaller amount than the collection of zakat funds from the corporate group. Also, the operational costs incurred by the ZMO from the social organization group are significantly higher. Besides, people who are obliged to do zakat usually distribute their zakat directly to mustahiq, so that it is not recorded in the financial statements of each ZMO.
Although ZMO from a social organization is in the third rank, the existence of a ZMO social organization is needed to manage zakat in the various regions so that zakat can be appropriately managed. This wide distribution may provide more benefits. ZMO social organization has a business focus on managing zakat and empowering people so that every management activity is aimed at optimizing existing zakat funds to help mustahiq.
The efficiency of an organization cannot be separated from the concept of governance that exists within organization where it is related to the existing input management process to achieve maximum and useful output. It has been mentioned in the previous section that the input variables used include: operations, socialization and salary expenses. Obviously these three inputs will be related and impacted on the output variables, namely: zakat collected and zakat distributed. To achieve optimal efficiency, it is necessary to optimize and implement good governance internally and externally. The effectiveness and efficiency of ZMO has an integral part of achieving the goal of reducing poverty as well as mustahiq.
ZMO must be effective, efficient, socialized, and has a significant impact on poverty alleviation and improving the welfare of mustahiq (Al Ayubi et al., 2018). Following the Total Potential Importance analysis result using the Super Efficiency method, the output variable which requires the most significant adjustment, is the distribution of zakat funds. To achieve an optimal efficiency level, ZMO must increase the number of zakat funds distributed by 12.66% and increase the number of funds raised by 4.58%. However, special attention is needed for internal ZMO related to the distribution of zakat funds from these muzakki. This is in line with the goal of the ZMO, which is to create prosperity by optimizing the distribution of zakat funds. The test results indicate that the internal ZMO has not optimally utilize in distributing zakat funds to muzakki, so it needs to be increased by 12.66%. Meanwhile, the Total Potential Importance by using the Super efficiency method, to achieve efficiency, each ZMO must reduce salary expenses by 27.28%; the operational cost by 28.08% and socialization expense by 27.64%. Not much different from the Super Efficiency method, by using the Free Disposal Hull method to achieve a better efficiency level, each ZMO reduces socialization expansion by 29.47%, operational expense by 27.96%, and human resource expansion by 27.64%. Besides, in reducing existing costs ZMO must also strive to increase zakat funds by 3.57% and distribution zakat by 11.36%. This means that the zakat funds collected are more significant than the zakat funds distributed by ZMO. Various factors could cause the distribution of zakat funds to be not optimal, including the lack of data of ashnaf, demographic characteristics of ashnaf, and the lack of understanding of amil regarding the classification of the eight ashnaf. Also, muzakki generally channel their zakat funds directly to mustahiq rather than channel their funds through ZMOs. Therefore, ZMOs must improve zakat management and optimize existing inputs in achieving efficiency. This has to be done to increase public trust towards ZMO so that fundraising increases and more funds can be distributed.
When viewed from the distribution of the population in Indonesia, the number of people from middle to lower-income and poor communities is still relatively high. So, it is impossible to say that the number of muzakki is greater than the number of mustahiq. This is also a sign that the social gap between the rich and the poor is quite large. For example, currently many students need education funding assistance which actually can be fulfilled from these zakat funds. However, in fact the distribution of zakat funds has not been optimal.
This shows the need to improve communication and access between the two parties, the muzakki and the mustahiq. The fact is supported by the research result from Widiastuti et al. It is better if ZMO has a specialization in empowerment to distribute their zakat funds so that the support for mustahiq can be more optimally done. As technology develops, it takes ways and efforts from each ZMO to provide convenience to each muzakki or mustahiq to distribute zakat funds and empower them. The use of this technology can reduce costs to optimize the collection and distribution of existing zakat funds. Yahaya & Ahmad (2019) stated that the use of technology such as mobile banking is a solution in increasing zakat collection because of the ease of access and cost-savings. This is also in line with Widiastuti et al. (2021) research who found the need for the ability to use technology as a solution for optimizing zakat management.
Optimization in the management of zakat funds will have a good impact on every aspect, especially on economic growth. The role of ZMO as amil zakat is demanded not only to provide convenience in distributing zakat but also to provide services for muzakki, in this case, openness or transparency in the use of the funds they manage. The clearer transparency of managed funds will increase the confidence of muzakki on utilizing each ZMO (Nasri et al., 2019;Amalia & Widiastuti, 2020).
Honesty has been discussed in various disciplines; this is done to test the relationship of honesty with many factors that affect specific fields of knowledge (Suud & Madjid, 2020).
One of the impacts is that ZMO's ability to distribute zakat funds will later influence the level of public trust in ZMO and will subsequently have an effect on the amount of zakat collected (Ghazali et al., 2016). Therefore, in addition to maximize the zakat collected, ZMO needs to optimize efforts to distribute these zakat funds. From the distribution of zakat, the community will assess the ability of ZMO in managing and making programs so that the zakat distributed reaches the right target of mustahiq and provides direct benefits to the mustahiq. This factor is often a consideration for muzakki in issuing their zakat, whether through ZMO or by channeling it directly to those around them who are in need. Apart from being right on target, there is also an "experience" that muzakki immediately gets on distributing zakat.

Conclusion
From the result of data processing, using both of Free Disposal Hull and Super Efficiency methods, it is found that one of the ZMO established by the company is the most efficient ZMO (highest efficiency level). Fourteen ZMOs are grouped into three groups, namely government, corporate and social organization. Based on the average value from each of these groups, ZMO established by the government is the ZMO with the highest level of efficiency, followed by ZMO managed by corporation and ZMO from the social organization.
This study also finds that ZMOs from all groups need to consider using inputs to produce optimal outputs. The amount of zakat collected and distributed needs to be considered in addition to optimize the use of costs. Suggestion from this study is that ZMO can be more focused on managing zakat funds and zakat distribution by providing additional technology or convenience in every aspect. Also, it is hoped that there will be better coordination between ZMO Government, ZMO Corporate, and ZMO Social organizations.
The limitations of this study are that it does not measure the efficiency of all ZMOs in Indonesia. However, in general, the result of efficiency analysis can be used as a reference for decision-making to achieve efficient ZMO management. Meanwhile, for the academic or researcher, we suggest another research with different periods or different methods of ZMO efficiency.