How BMT decreases the poverty in Indonesia.

Baitul Maal wat Tanwil (BMT) is a micro economical Islamic financial department operates by profit sharing system. BMT helps small business scale in order to decrease poverties by managing the collective capital from the investors. Principally, BMT was built based on salaam civilization the fair and peaceful social welfare.

The basic principles of BMT:

  • Ahsan (the best quality control), Thayyiban (the most suitable), Ahsanu ‘amala (the investors and the costumers satisfaction).
  • Barokah (fully interested and effective efficient), Transparency and responsibility for civil society.
  • Spiritual communication.
  • Democratized, participated, and inclusive.
  • Social welfare
  • Potential developing of local civic society.

BMT is a collective independent department purposed to develop social welfare by financing civil economic and decrease amount of poverty. The implementations of BMT principles become the most important factor to develop BMT itself.

Based on Indonesian statistic on 2009 the collective amount of poor civilization is 33.7 million of entire civilization, in the 4.5% of national economic development and 9% of inflation. [1]As BMT has become the most strategic department to reduce the poverty, it is proved that in 1995-2005, more than 3.300 BMTs were established and the assets reached more than 1.7 billion rupiah, served more than 2 million consumers, provided 1.5 million microeconomic credits, and employed more than 21.000 employees. Here is the list of developed BMTs in Indonesia:

  • BMT Dinar (karang anyar with 31 billion rupiah assets)
  • BMT Ben Taqwa (central of java with 30 billion rupiah assets)
  • BMT MMU (pasuruhan east java with 17 billion rupiah assets)
  • BMT Marhamah (wonosobo central of java with 13 billion rupiah assets)
  • BMT Tumang (boyolali central of java with 4 billion rupiah assets)
  • BMT Baitul Rahman (bontang east borneo with 6 billion assets)
  • BMT PSU (malang east java with 5,6 billion assets)[2]

BMT succeed to decreas the amount of poverty by applying social actions (baitul mal) such as zakah, shadaqoh, waqaf and another charities. This action has a direct impact to the poor society.  Starting with zakah, shadaqah, waqaf, BMT runs its function as the agent of assets distribution and as social economic healer. Social credit or (qardhul hasan) from social money is allocated only for the poorest social civils, because this social function is non profit oriented. It also creates a harmoniuos relationship among the rich and the poor ones.

BMT is also profit oriented, as the common Islamic bank, BMT also provides: mudharabah, musyarakah, ijarah, etc. This function includes financials and real sector function. Finally, these two functions support BMT to be the most effective and efficient department to decrease any poverty not only in indonesia but also the entire world. BMT is established as the agent of community development and the agent of asset distribution. BMT grows as an institution to increase social welfare, create a social econoic justice, create new job vacations, and create bussines network.


[1] http://nasional.kompas.com

[2] http://muamalatbmt.blogspot.com/2009/01