Analysis of Position and Role of Baitul Maal Wa Tamwil in the Empowerment of Peoples Economy
Uus Ahmad Husaeni and Tini Kusmayati Dewi
Faculty of Islamic Economic and Business, Suryakancana University
Abstract
This research is motivated by the fundamental changes in micro finance industry map caused by the many penetration done by big players (rich people), so Baitul Maal Wa Tamwil (BMT) position began to lose its identity and must be transformed to face competition in micro finance sector. The purpose of this study is to prove the total change of microfinance business and analyze the position and role of BMT in the economic empowerment of people. This research is qualitative with library approach, where primary data are collected from primary sources in the form of related literature and secondary data in the form of publication report and interview. The data are then presented and analyzed by descriptive-analytical method using SWOT approach. The main conclusion of this research is that there has been a commercialization of microfinance business in Indonesia, so that BMT who carry out the mission of economic empowerment of people should focus on choosing the role as well as transform themselves. The transformation is done by changing its role and position to two alternatives; commercial or social, which is then supported by good corporate governance. This study is in line with the research of Marguerite S. Robinson (2002), Lincolin Arsyad (2008), and Ummer Chapra (2012) which outlines the financial ratios and healthy capital composition to support good performance. On the contrary, this study differs from Awalil Rizkys (2007) research which highlights the Islamic girah as a prospect, Euis Amalias research (2009) which emphasizes the need for regulatory and government policies in order to empower Small and Medium Micro Enterprises (MSMEs)
Keywords: BMT; Economic Empowerment; Micro Finance; and SMEs
Topic: International Conference of Islamic Economic and Financial Inclusion