Baitul Maal Wat Tamwil Research Articles

Manajemen Risiko Bisnis BMT di Tengah Pandemi COVID-19

The economic contraction in the MSME (Micro Small and Medium Enterprises) sector during the Covid pandemic directly impacted financial business performance. On a micro scale, BMT (Baitul Maal wat Tamwil) as a sharia microfinance institution is affected by the weakening of economic activity in the MSME sector. This is understandable because in its activities, BMT makes MSMEs its business partners. From a business aspect, the impact experienced by BMT is the emergence of various risks; increasing problematic financing, liquidity and operational risks. The results of this qualitative research show that; Firstly, business risks that arise at BMT NU Jawa timur Balung Branch and BMT UGT Nusantara Rambipuji Jember include financing risk, operational risk and liquidity risk. Financing risk is characterized by a high number of problematic financing. Meanwhile, operational risks are characterized by restrictions on access to the office, physical distancing, and increased operational costs. Meanwhile, liquidity risk is characterized by an abundance of funds in cash. Second, risk management at BMT NU Jatim Balung Branch and BMT UGT Nusantara Rambipuji Jember is carried out sequentially starting from risk identification, measurement, analysis and control activities. Based on this process, tactical steps are then developed to handle each aspect of risk. Financing risks include financing moratorium steps, intensive collection, restructuring and creating reserves for losses. Operational risks are approached by the issuance of new rules regarding office operating systems and rules related to the implementation of Health procedures.

Creating Sustainability in Islamic Microfinance Institutions Based on a Networking Approach

Purpose — This study aims to find a sustainable development model for Islamic microfinance institutions (Islamic MFIs) based on Islamic networking and the critical factors that support their sustainability. Design/Methodology/Approach — This study uses a qualitative approach by conducting a literature review to find research directions and undertaking focus group discussions (FGD) with a network provider and Baitul Maal wat Tamwil (BMT) managers in Central Java. The FGD involved five stages. The first stage was carried out with a network provider (the Association of Baitul Maal wat Tamwil (or PBMTI)), and the second to fifth stages were carried out with BMT members of PBMTI as Islamic MFIs, whose implementation sequence was based on accreditation ranking (A, B, C, and D categories). The purpose of this grouping was to find the views of different stakeholders on the role of networks. Findings — This study found that Islamic networks have an important role in building the sustainability of Islamic MFIs. This important role is based on Islamic values (i.e., faith, morals, daʿwah (preaching), and social care) and the facilities provided in the network. Originality/Value — This study is unique as it explores the role of networks that develop Islamic values and provide various facilities to develop Islamic MFIs so that they can serve the community better and in a more sustainable way. Research Limitations/Implications — The FGD was conducted with representatives of BMT members of PBMTI whose number and opportunities for communication are limited. Therefore, more intensive studies are needed to determine the impact of the network on the members based on the programmes or facilities offered.

Aplikasi Hybrid Contract pada Produk MJB: Studi Multiakad di BMT Nusantara Capem Kencong

Islamic financial institution BMT (Baitul Maal wat Tamwil) develops a range of solutions to address the intricate requirements of its clients. The contract, or akad, is an essential document in muamalah transactions since it sets forth the rights and responsibilities of the parties involved. So, Islamic financial institutions, especially BMT, need to innovate, be progressive, and dynamic by upgrading their muamalah contracts so they can compete with mainstream financial institutions' goods. The use of hybrid contracts to fund savings products is one example of this kind of innovation. Therefore, the author is keen to investigate whether or not BMT UGT Nusantara Branch Kencong's contracts are legitimate. The researchers at BMT UGT Nusantara Branch Kencong set out to learn more about hybrid contracts, which include more than one contract. In order to bring theory and practice into harmony, this study employs a qualitative methodology that combines primary and field data. Scholars approve of these hybrid contracts, according to the results, provided they don't go against Sharia norms and principles. To prevent unfair treatment of individuals, these hybrid contracts aim to define rights and responsibilities more precisely. It follows that purchasing MJB items via hybrid contracts at BMT Nusantara Branch Kencong is lawful and in accordance with Sharia law. In addition, both BMT and its clients may benefit from muamalah via these hybrid contracts.

Designing waqf-based financing model for livestock project: empirical evidence from Indonesia

PurposeThis study aims to propose a productive waqf-based financing model for the livestock sector by optimizing idle waqf land owned by Islamic boarding schools (pesantren) for livestock breeding and fattening projects. Most pesantrens are established on waqf land and are located in rural areas with great potential for implementing waqf-based livestock projects.Design/methodology/approachThe authors conducted a critical review on the models of waqf-based empowerment and financing for the livestock, agriculture or agribusiness sectors. Then, a proposed model was designed focused on livestock sector by using waqf land owned by pesantren. To strengthen the proposed model, the authors held a focus group discussion (FGD) by inviting regulators, academics, practitioners/consultants in animal husbandry, waqf, pesantren and economic empowerment.FindingsPesantren as nazhir of waqf land can cooperate with baitul maal wat tamwil (BMT) acting as nazhir of cash waqf to form a breeders’ cooperative as the vehicle to carry out the process of producing and fattening cattle. The project is performed under a mudharaba, musharakah or ijara contract, which is supervised by pesantren and BMT.Research limitations/implicationsThis research is based on the Indonesian context due to it is influenced by country-specific conditions. Even so, some of the findings in this study can still be adopted by waqf asset managers in other Muslim countries, which also have potential in terms of the number of pesantren and waqf assets.Social implicationsThe proposed model can improve the quality of life of the poor in remote areas by fulfilling the demand for beef consumption accompanied by sustainable economic empowerment.Originality/valueThis research focuses on solving the problem of meeting basic needs for beef by optimizing productive waqf in the livestock sector by involving the role of pesantren, which still needs to be discovered in the literature on the use of waqf land.

Model of the Relationship of Religious, Image, Trust, and Satisfaction towards Member Loyalty in BMT in Jambi, Indonesia

This research aims to evaluate the influence of Religiosity, Image, Trust, Satisfaction, and Loyalty of Baitul Maal wat Tamwil (BMT) members in Jambi, Indonesia, both with and without mediation by the variables image, trust, and satisfaction. Considering that the development of BMT in Jambi is slower than in other provinces in Sumatra, this research was conducted in Jambi, Indonesia. The research design uses quantitative methods with a survey approach to collect primary data through questionnaires distributed to 100 BMT members in Jambi, Indonesia, using a purposive sampling method for sample selection. Quantitative data was then analyzed using the Structural Equation Model (SEM) with the help of SPSS 22 and SmartPLS software. The research results showed that Religiosity significantly influenced BMT's Image, Trust, and Member Satisfaction in Jambi, Indonesia. The image does not affect member loyalty to BMT, but Trust and Satisfaction significantly influence member loyalty to BMT in Jambi, Indonesia. This research is expected to provide theoretical contributions in the field of Sharia marketing management and consumer behavior at BMT, as well as practical contributions for BMT management and related parties as information for determining marketing strategies for BMT products in Jambi, Indonesia to increase satisfaction and loyalty of BMT members in Jambi, Indonesia

Peran Lembaga Keuangan Mikro Syariah dalam Pengentasan Kemiskinan di Indonesia

The role of Micro Sharia Financial Institutions in overcoming poverty in Indonesia is needed through the financial services that have been provided. Indonesia has been intensively trying to overcome poverty because one of the main goals of national development is to reduce and even eliminate poverty. In March 2023 the number of poor people in Indonesia has decreased to 25.90 million people. The purpose of this research is to describe the role of Sharia Microfinance Institutions in alleviating poverty in Indonesia. This research uses a descriptive qualitative approach research method with secondary data obtained from books, journals, and data sources related to the study under study. The results of this study found that Micro Sharia Financial Institutions in the form of BMT (Baitul Maal wat Tamwil) have a very large role in poverty alleviation in Indonesia. Capital from BMT will be channeled to small communities so as to open up opportunities in creating jobs and alleviating poverty.

The role of financial accountability control in improving financial performance

Purpose – This study aims to describe the effect of diversity of knowledge and financial capabilities on accountability for behavior control and improvement of financial performance.Design/methodology/approach – The population in this study were all branches of the Baitul Maal Wat Tamwil Sharia Savings and Loans Cooperative (KSPPS BMT) in Central Java. The sample used purposive sampling to obtain 146 respondents. Data were analyzed using the Structural Equation Modeling (SEM) analysis technique with the application of Analysis Moment of Structural (AMOS 24).Findings – The results of the study explain the increase in financial performance based on Behavioral Accounting Theory and Human Resource Management Theory. The behavior control accountability model shows that perceived interest and intention in self-confidence to control accountability behavior as indicated by behavioral intention, perceived behavioral control, process and financial accountability can affect financial performanceResearch limitations/implications – Where the factors of diversity of knowledge and financial capability in shaping accountability for behavior control and impact on financial performance will offer a deeper understanding of the supporting factors for accountability for behavior control and also have an impact on efforts to improve financial performance.Practical implications – A better understanding of the factors influencing improvement efforts should assist accountants in information processing, quality of judgments, accounting problems that arise with accounting users and preparers, and the use of information in accounting decision making.Originality/value – Using and explaining about improving financial performance based on Behavioral Accounting Theory and Human Resource Management Theory. The behavior control accountability model shows that perceived interest and intention in self-confidence to control accountability behavior as indicated by behavioral intention, perceived behavioral control, process and financial accountability can affect financial performance

Implementation Of Murabaha Financing In Baitul Maal Wat Tamwil: A SWOT Analysis

This research uses the SWOT approach to review Murabaha financing at Baitul Maal Wat Tamwil (BMT). This research is field research, with primary and secondary data sources, such as questionnaires, interviews, and literature. The research sample consisted of 20 people and three informants. Data analysis uses a mixed method approach, quantitatively and qualitatively, with the IFAS, EFAS and SWOT matrices. The research results found that several internal and external factors need to be evaluated, such as public trust, quality leadership, networks and partnerships, excellent and friendly service, practical procedures, and strategic location, which are assets that organizations can utilize to socialize Murabaha financing in the community. Meanwhile, external opportunities such as support from government agencies, a majority Muslim community, and local marketing strategies offer further growth and development potential. However, there are areas for improvement in education and awareness, product and service innovation, limited resources, and local marketing strategies that need to be overcome. Furthermore, threats from many competitors, the same target market, and a low public understanding of Islamic financing exist. This research can be helpful as a reference for future research and then become a reference for BMT in aligning organizational strategy with internal strengths and external opportunities, as well as overcoming existing weaknesses and threats.

PERBANDINGAN PERAN SUMBER PERMODALAN SEBAGAI PENGUATAN USAHA MIKRO KECIL MENENGAH (UMKM) SEBELUM DAN SELAMA COVID-19 (2018 S.D 2021)

The Micro, Small, and Medium Enterprises (MSMEs) have become one of Indonesia's economic sectors affected by Covid-19. The capital sources for MSMEs before and during COVID-19 (2018 to 2021) have presented two distinct situations, which we address in this study. The research aims to analyze the differing situations regarding the primary capital sources for MSMEs before and during COVID-19 (2018 to 2021). The research methodology involves a qualitative literature review utilizing data from articles on Google Scholar between 2018 and 2021 using the keyword "MSME capital sources," totalling 50 articles before and during COVID-19. The findings reveal that MSMEs, in the two situations, have distinct focuses on capital sources. Before COVID-19, MSMEs primarily relied on Banking Institutions for capital, while during COVID-19, they shifted focus towards non-banking institutions such as Fintech, Baitul Maalwat Tamwil, Venture Capital, Government, Personal Funds, Pawnshops, Credit Institutions, Cooperatives, State-Owned Enterprises (BUMN), and Village-Owned Enterprises (BUMDes). Furthermore, the role of funding from both banking and non-banking sources is crucial in supporting the sustainability of MSMEs.

Identifikasi Mission Drift Pada Keadilan Jender dan Inklusi Sosial di Lembaga Keuangan Mikro Syariah

Islamic Microfinance institutions (IMFIs) their operations are expected to not only consider financial performance, but must accommodate the principles of gender justice, because humans both men, women and people with disabilities are equally as khalifatullah fil ard to manage the earth as God wills. However, several studies show a shift in the mission carried out by IMFIs. This research aims to determine the forms of mission drift that occur at IMFIs, especially Baitul Maal Wat Tamwil in 3 districts in Central Java, District of Jepara, Kudus and Demak. These three regions were chosen because they have different levels of IMFIs development. The research results show that the forms of mission drift that occur include: (1) Differences in the accessibility of financial services based on gender; (2) Changes in IMFIs customer priorities; (3) Product changes that prioritize bankable customers; (4) Increasing of Margin, Ujroh profit sharing portion and costs; (5) Changing the focus of financing to be more profit-oriented. The implication of the results of this research is that MFIs need to mainstream gender by paying attention to the portion of financing and absorbing public funds in a Gender-equity manner by encouraging balance between the portions of men and women. Regulators need to carry out strict supervision so that their commitment to maintaining the IMFIs mission values, apart from that, stimulus to institutions that prioritize gender justice also needs to be provided.

Pendidikan Koperasi dalam Memahami Konsep Dasar Operasional Koperasi Syariah pada Koperasi Simpan Pinjam dan Pembiayaan Syariah Baitul Maal Wattamwil Forsitama Kabupaten Sleman Daerah Istimewa Yogyakarta

Sharia cooperatives in carrying out operations must be in accordance with sharia principles, this is the basic operational concept for Sharia cooperatives so that every business carried out does not conflict with Sharia principles so that it brings blessings to cooperative managers, members, and the community. This is what administrators and managers of Sharia cooperatives need to understand, namely through cooperative education, one of which is organized by the Sharia Savings and Loans and Financing Cooperative (KSPPS) Baitul Maal Wattamwil (BMT) Forsitama, Sleman Regency, Yogyakarta Special Region. The aim of implementing this cooperative education is to provide an understanding of the basic operational concepts of sharia cooperatives for administrators and managers of KSPPS BMT Forsitama, Sleman Regency, Special Region of Yogyakarta so that they are able to increase knowledge for managing sharia cooperatives. The method used in cooperative education is the lecture method which is assisted by showing visual material, followed by questions and answers and discussions to solve problems that arise, accompanied by solutions. Through this cooperative education, the administrators and managers of KSPPS BMT Forsitama, Sleman Regency, Yogyakarta Special Region have been able to understand the basic operational concepts of sharia cooperatives, namely using contracts. musyarak muwafadhah with the principle of ta'awun or mutual cooperation which refers to the sources of Islamic Law (the Al-Qur'an and Hadith), the Fatwa of the National Sharia Council of the Indonesian Ulema Council and the laws and regulations in force in Indonesia.

Islamic Corporate Social Responsibility: CSR Practices by Islamic Microfinance Institutions in Lampung

Purpose: This article describes the practice of corporate social responsibility (CSR) adopted by Baitul Maal Wa Tamwil (BMT) in Lampung. This study also examines the literature on different views of CSR and how CSR can be rooted in organizational strategy so that it becomes an organizational competitive advantage. Methodology: A descriptive qualitative method was used in this study, in which the researchers conducted in-depth interviews with both BMT employees and beneficiary communities. Findings: This study found that Baitul Maal Wa Tamwil, which became the locus of research, namely BMT Assyafiiyah Berkah Nasional carries out CSR corporate social responsibility in several forms of programs both physical, facilitating and empowering in nature. The physical form is carried out by providing assistance for the construction of places of worship, Islamic boarding schools, the construction of drilled wells and a program to renovate livable houses. The form of facilitation is carried out by providing compensation, giving OTP (Sponsoring Parents), giving TPA incentives, community service cars and productive forms by giving rolling goats and providing business capital with a qordul hasan contract. This study recommends the need to increase the involvement of baitul maal wattamwil in the process of economic development in general, because the practice of corporate social responsibility will contribute not only to increasing the company's competitive advantage but also to increasing community empowerment. For the company, CSR will also ensure the company's sustainable growth due to improved image and increased customers leading to increased profitability.

Implementation of Simple Additive Weighting to Decide a Fund Proposal

One of Indonesian micro financial services is Baitul Maal Wat Tamwil (BMT) provides services such as savings, financing and zakat activities. Financing service determine qualifying status based on consideration of customer files before carried out in company discussions. This decision support system aims to provide officers to decide whether or not to admit funding. The research used Simple Additive Weighting (SAW) by finding the prejudiced sum of the performance ratings for each alternative from all criteria. The method used 7 criteria including income, outstanding loans, amount of financing, collateral, nature/environment, track record of financing and monthly expenses. Customers were declared acceptable if they had a preference value above the minimum limit of 16.1. The BMT officer can adjust the minimum limit value according to customer performance. To develop the system used waterfall method and to verify system performance used a black box test which shows the results that the system works according to its function and the validity test results obtained 100% accurate. It means the system is ready and suitable for use. The existence of this decision support system is able to assist officers in making decisions to qualify for financing objectively.

Improving the performance of baitul maal wat tamwil (BMT) employees: Do the principles of good corporate governance (GCG) matter?

Research aims: The role of human resources in Baitul Maal wat Tamwil (BMT) is vital as it is the main driver of all company activities in achieving its goals. This study, therefore, aims to examine the influence of corporate governance (CG) principles on employee performance in BMT.Design/Methodology/Approach: The object of this study was BMTs in Yogyakarta Province, with the respondents being BMT employees. The data collection technique employed a questionnaire measured by five Likert scales. The data in this study were then processed using the multiple linear regression method.Research findings: The study uncovered that all CG principles, i.e., transparency, accountability, responsibility, independence, and fairness, positively influenced employee performance.Theoretical contribution/Originality: This study contributes to the development of BMT management in Indonesia to start or improve the implementation of corporate governance since it positively impacts employee performance.Practitioner/Policy implication: BMT has challenges related to human resource competence. The organization (BMT) can evaluate the implementation of GCG in its operational activities because it can affect employee performance.Research limitation/Implication: The study only took samples from Yogyakarta Province. The physical distribution of questionnaires also limited the number of samples that could be collected.

What is the Baitul Maal wat Tamwil Inbound Marketing Model in Indonesia?

This study intends to describe practical models of inbound marketing at Baitul Maal Wat Tamwil (BMT). This research is an observational descriptive study on BMT in Indonesia, using the triangulation method. The total subjects recruited in the study were 50 BMT. This study uses primary data obtained based on structured interviews and in-depth interviews with BMT managers. Data analysis uses descriptive and qualitative analysis and is displayed in descriptive form. The findings of this study conclude that BMTs in Indonesia have used inbound marketing to inform and communicate with customers. Social media that is often used is Facebook, Whatsapp, Instagram, TikTok, and Twitter. The platform is quite effectively used in informing BMT products and interacting directly with customers. The benefit most felt by BMT is that communication with customers and customers is more intensive and effective and efficient because they can communicate directly in full and real-time. The strategy for implementing inbound marketing has proven to have a positive impact on BMT and its customers, inbound marketing has been able to increase sales of fundraising and financing products at BMT.

Does product knowledge, Islamic branding and religion influence interest in accessing Islamic microfinance institutions?

This study aims to determine how preference variables mediate the relationship between product knowledge, Islamic branding, and religiosity on farmers' interest in accessing Islamic Microfinance Institution (Baitul Maal Wat Tamwil (BMT) financial services. The study population consisted of 100 farmers in Kedungadem District. The data analysis method used is Smart-PLS (Partial Least Square). The results of the study according to direct testing show that farmers' interest in using BMT services is significantly influenced by factors such as product knowledge, Islamic branding, and preferences. Indirect testing shows that preference can mediate the relationship between product knowledge and farmers' interest in using BMT, while preference cannot mediate the relationship between Islamic branding, religiosity, and farmers' interest in using BMT.

Pengaruh Pengetahuan dan Persepsi Masyarakat Terhadap Minat Menggunakan Pembiayaan Murabahah di Baitul Maal Wat-Tamwil Al-Ishlah Kota Jambi

Economic life cannot be separated from the important role of the financial services sector in general and banking in particular. It is through this media that the aim is to realize a healty economy by empowering existing funds or investment potential in the community which can be channeled into various productive activities so that healthy economic growth can be achieved and avoid usury. There are several financing products such as mudharabah, ar-rahn, and qardhul hasan. Baitul Maal Wat-Tamwil to provide financing to small businesses cannot possibly be replaced by sharia banks, because it is impossible for sharia banks to operate in small scale financing, while the community needs small capital. The purpose of this study was to determine the effect of knowledge the intention to use murabahah financing in the Baitul Maal Wa-Tamwil Al-Ishlah, Jambi City, to determine the effect of public perceptions on yhe interest in using murabahah financing in the Baitul Maal Wat-Tamwil Al-Ishlah, Jambi City, and to determine the influence of public knowledge and perceptions of interest in using murabahah financing in Baitul Maal Wat-Tamwil, Jambi City. This research is a quantitative research, collecting data using questionnaires and questionnaires. The sampel for this research was the local community in RT 19, Simpang IV Sipin Subdistrict, Telanaipura District, Jambi City, totaling 86 peole. The reseacrh results show that the variables of knowledge and public perception influence interest in using murabahah financing. The results of calculating the coefficient of determination show that the variables of knowledge and public perception are 76,9% and 23,1% influenced by other variables outside this reseach.

Penyelesaian Sengketa Wanprestasi di BMT Al-Hidayah

Baitul Maal Wat Tamwil and its customers have a very close legal relationship in which reciprocal rights and obligations arise. If in the future there is a dispute between the BMT institution and its customers, the dispute must be resolved in the fairest way. This is the right way for BMT institutions to maintain the empowerment of their customers so that they are truly protected by their rights. This study aims to find out how to resolve default disputes in BMT Al-Hidayah. The method used in this study is qualitative research method. This research is included in the category of case study research using a qualitative approach that is descriptive. BMT problems are default disputes that affect the bad financing of BMT operations, bad loans and pristiwa outside of the creditor's intentionality. The default dispute resolution strategy at BMT Al-Hidayah is through litigation and non-litigation channels. This occurs in the dispute between party K and party Z, both of whom experience default disputes but in the settlement have different solutions in the resolution. Party K resolves its default disputes through familial channels and deliberation by referring to the clauses of Article 4 of Law No. 42 of 1996. Meanwhile, party Z takes dispute resolution through mediation channels involving third parties as mediators whose job is to provide solutions, direction and foresight to the problems faced. For this reason, BMT as a sharia-based institution has many alternatives and appropriate strategies in solving disputes that occur.

The Influence of Leadership and Supervision on Employee Performance in Baitul Maal wat Tamwil (BMT) Surya Madani Ngemplak Branch Boyolali Regency

The purpose of this study is to find out the influence of leadership on employee performance, and the influenceof insight on employee performance at BMT Surya Madani Ngemplak Branch, Boyolali Regency. The method used in this study is quantitative method. The sample inthis study was employees at BMT Surya Madani Branch Ngemplak Kabupatent Boyolali as many as 30 respondents. The data analysis techniques used are multiple linear regression analysis, t test, F test, and coefficient of determination. The results showed that leadership and supervision had a significant effect on the performance of employees at BMT Surya Madani Ngemplak Branch of Boyolali Regency, both partially and simultaneously. The amount of influence of leadership and supervision has a significant effect on employee performance at BMT Surya Madani Ngemplak Branch, Boyolali Regency is 86.4%.

Potensi dan Peran Kontribusi BMT Sidogiri Cabang Depok dalam Meningkatkan Produktivitas Bisnis Lokal

This research investigates the role of Baitul Maal Wattamwil (BMT) UGT Sidogiri Branch in Sawangan Depok in enhancing the productivity of Micro, Small, and Medium Enterprises (MSMEs) and its impact on local economic development. The study employs a descriptive analysis method based on quantitative data collected from BMT's financial reports and MSME members who received financing in the form of Barakah Business Capital (MUB). Additionally, insights into BMT's role in empowering MSMEs were obtained through interviews with BMT management and MSME members. The findings reveal that BMT UGT Sidogiri Branch significantly contributes to enhancing MSME productivity. Providing MUB financing offers substantial benefits to MSMEs, helping them improve their businesses and support local economic development. BMT successfully facilitates collaboration among members, strengthens economic synergies, and places special emphasis on the welfare of MSME members through a profit-sharing system based on Sharia principles. Despite its positive contributions, the research identifies several challenges faced by BMT Sidogiri, including members who are urban dwellers or newcomers, competition with daily banks/usurers, and technological limitations. Nevertheless, BMT UGT Sidogiri has implemented strategic measures, such as a family-oriented approach and technology integration, to address these challenges.