Development of MSMEs (Micro, Small and Medium Enterprises) by Baitul Maal Wat Tamwil (BMT) as an Instrument for Poverty Reduction

Gina Noviana Yuniar

doi:10.13189/aeb.2015.030201

Abstract

MSME is a sector that plays an important role in economic development in Indonesia, seen from the significant contribution in employment. Accounted GDP, foreign exchange and giving donations. In carrying out its role, the MSMEs sector did not grow and develop without having a problem despite the development contribution is quite large. The problem that often occurs in the MSMEs sector are relatively complex, ranging from human resources issues, access to capital, business culture and management capability as well as fund management business that is mixed with household finances. This is what needs to be addressed by the related parties on an ongoing basis. It needs a real movement and implementable, one strategic effort to do is through the optimization of the role of Islamic Microfinance Institutions (LKMS) is Baitul Maal wat Tamwil (BMT). Given the banking institutions have not been able to touch the bottom of society (poor, poor and other dhu'afa). Their access to banking is very small, almost nothing at all. They also do not have collateral and are not good at making proposals. But with the BMT, they tried to improve the well-being of its clients with financing and assistance to customers.

Highlights

MSME (Micro, Small and Medium Enterprises) is one part of the world economy which attracted much attention of researchers, academics, practitioners and policy makers because of its development
The increasing growth of MSMEs in Indonesia, especially the local scale is influenced by a variety of actions taken by people who demanded they be better prepared to face the free market economy, that's the impact on the community for over switch professions as entrepreneurs or at least have a profession as MSMEs
This potential can fill the role of banks in financing MSMEs and a force to be more optimal in poverty alleviation movement if she continued to be optimized

Summary

Introduction

MSME (Micro, Small and Medium Enterprises) is one part of the world economy which attracted much attention of researchers, academics, practitioners and policy makers because of its development. Development of MSMEs (Micro, Small and Medium Enterprises) by Baitul Maal Wat Tamwil (BMT) as an Instrument for Poverty Reduction and beroprasi are effectively able to play a role in improving and encouraging people's economy in Indonesia. The emergence LKMS customers business sector plays an important role in poverty reduction This opportunity is a challenge for the sector to be able to realize LKMS great job of this in order to create a productive economy by way of eradicating poverty, improving the quality of working capital and provide coaching and mentoring efforts to create empowering SME customers. This paper is focused on optimizing the function and role of LKMS or BMT (Baitul Maal wat Tamwil) in an effort to the development of MSMEs (business customers) as an instrument to alleviate poverty by using the instruments working capital financing and business assistance. This condition can create a business climate models or Islamic Shari'a compliant

Islamic Microfinance Institutions

Methodology

Finding

Providing education about financial reporting

Conclusion and Limitation