Some points on the Selected reading (on BMT)

1. On Prospect of Islamic Microfinance Institutions in Scale Micro … by Lasmiatun

• BMT model has two function; social and business function. It is one of the most strategic way in alleviating poverty. It can be said also that BMT is one extended interpretation of the fifth Sharia Objective (maqāṣid al-sharī‘ah), which is Hifz al-Māl. 
• It is hard to count the amount of the poor in Indonesia, because the existing data pertaining to poverty are utilizing different parameter and standard. Therefore in the short run it is nearly impossible to generally and aggregately measure the contribution made by BMT in eradicating poverty.

 

2. On Determinants of the Establishment of Islamic Micro Finance… by Alfiah Hasanah & Arief Anshory Yusuf

• There are several external factors that could be associated with the likelihood of BMT establishment in a region. Some of them are: 1) the presence of economic activities particularly in agricultural sector, 2) easy access to market, 3) recent calamities, particularly drought, experienced by nearby villages 4) villages with majority Muslim.

 

3. On Analysis Problem of Baitul Māl Wa Tamwil (BMT) Operation…. By Dr. Hamzah, Zulkifli Rusby & Zulfadli Hamzah

• The main problem threatening the sustainability of a BMT remains firstly, the lacking of quality of human resources and secondly, government regulation of BMT. The former comes from inside, while the latter comes from external side.

 

4. On Study on Factors Influencing Performance of the Best BMT in Indonesia by Muhammad Akhyar Adnan & Agus Widarjono & Bekti Hendri Anto

• The finding reveals two main factors that significantly influence BMT’s performance. The first is the salary rate of management. The second is the education and management skill of the individual involved in daily operation and the product attributes.

 

5. On Improving Social Capital of BMT by Atih Rohaeti Dariah

• In order to improve social capital, BMT’s top management will have to efficiently and effectively implement Qarḍ Ḥasan type of financing and ZIS (Zakah, Infaq and Sodaqah). It also developes community-rooted approach in delivering coaching programme for members, hearing complaints with regard to service, and teaching knowledge about Islamic Economics.

 

6. On Redefine Micro, Small, and Medium Enterprises Classification.. by Ascarya & Yulizar D. Sanrego

• BMT institution and any other Non-Govermental Organisation (NGO) such as Dompet Dhuafa (DD) as well as local Lembaga Amil Zakat (LAZ) have a bigger chance to penetrate into small-scale enterprises uncovered by bank service. Truly it is partly because only non-bank institution are more friendly to these micro enterprise in term of rigid legal form of credit approval, etc.

 

7. On The Profile of MSMEs in Indonesia… by Ascarya & Diana Yumanita

• In collaboration with individual commercial Islamic bank and Ministry of Cooperative, BMT can function as intermediary institution through which Islamic Financial Services can reach small and micro business entities. This is so because Islamic banks and Governmental agency are usually uneasy and reluctant to enter financing market of less than Rp50 million (US$5.500).

 

8. On The Dynamic Role and Performance of BMT … by Mohammad Nazirwan

• The study finds that the primary motivation underlying the BMT system is religious intermingled with socioeconomic objectives. It provides a faith-based microfinance service to the poor people and supports them to engage in productive economic activities and to become self-reliant.
• There are three variant of the BMT; 1) profit motive, 2) socio-religious motive, and 3) mixed both motive. However, the study finds that the vast majority of BMT’s are more inclined to generate profits in order to maintain their long-term operations and financial sustainability.