Two Indonesian government agencies have formed a strategic partnership to manage Islamic philanthropic funds.
The collaboration between the National Alms Agency (Baznas), which collects zakat, a mandatory annual tax for Muslims, and the Halal Product Assurance Agency, known by its local acronym BPJPH, “marks a milestone in optimising alms collected from civil servants and government employees”, according to Noor Achmad, head of Baznas.
He says BPJPH will integrate its Islamic fund collection system with Baznas. BPJPH will also set up a dedicated unit to simplify zakat payments by government employees.
“The formation of this unit reflects efforts to extend zakat outreach to those in need across Indonesia,” Noor Achmad says in a statement on March 2.
He did not provide financial details.
The most recent annual report from Baznas shows that the agency had 502.99 billion rupiah (US$29.82 million) of total assets as of end-2024. Financial details for BPJPH are not publicly available.
