Baitul Maal Wat Tamwil as an Islamic Financial Inclusion Institution Model Towards a Sustainable Development

DOI

10.2991/icse-15.2016.50How to use a DOI?

Keywords

baitul maal wat tamwil, financial inclusion, empowerment, and informal sector

Abstract

This research is based on the issues of many informal sector businesses that do not have access towards capital from formal financial institutions, especially Islamic ones that are still considered to be exclusive and hard to reach. The research aims to find the best model in empowering informal sector businesses based on sharia principles conducted by Baitul Maal Wat Tamwil (BMT), equivalent to sharia micro financial institution. It adopted qualitative descriptive approach and employed SWOT analysis of the ten BMT which are actively funding and empowering informal sector business in Bandung Raya. The model of empowerment that is implemented by BMT is divided into three clusters with indicators : the utilization of productive economic, mentoring and training. The general results of this research indicate that the majority of BMT is the second cluster, with characteristic activities only productive economic empowerment through Islamic micro financing and still not contribution to social function in running mentoring and training to informal sector businesses. Additionally, Based on the results of SWOT analysis, it is found that in general BMT has the potential to develop due to the principle of justice and its closeness to the micro business which has not been accessed or touched by other financial institutions. On the other hand the potential is still constrained by the capacity of Human Resources inadequacy in providing business advisory services at the same time. The implication of the research shows the needs for competent human resources in developing BMT a professional entrepreneur who has good spirituality in empowering informal sector businesses community.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - A. Jajang W. Mahri
AU  - Suci Apriliani Utami
AU  - Firmansyah Firmansyah
AU  - Aneu Cakhyaneu
PY  - 2016/04
DA  - 2016/04
TI  - Baitul Maal Wat Tamwil as an Islamic Financial Inclusion Institution Model Towards a Sustainable Development
BT  - Proceedings of the 1st UPI International Conference on Sociology Education (UPI ICSE 2015)
PB  - Atlantis Press
SP  - 231
EP  - 235
SN  - 2352-5398
UR  - https://doi.org/10.2991/icse-15.2016.50
DO  - 10.2991/icse-15.2016.50
ID  - Mahri2016/04
ER  -