“The Islamic economists often remain in debate to formulate several Islamic economics theories and instruments.” -Chapra- In a larger scope of view, Indonesian Islamic economic development has been dominated with a sophisticated euphoria on Islamic commercial banking industry; which are from the beginning grow on the basis of Limited Company or PT and forget about the essence of Islamic Economics main idea. How far that industry might thinks to develop poor people economic capacity? United Nation defines poverty as the lack or the absence of income to fulfill diet and housing; therefore, automatically the potential unemployment that have economic potential fall to poverty. Islamic banking statistic on February 2012 records 11 Islamic Banks available in Indonesia with 1.421b branch offices. And according to Indonesia BMT Association data in the end of 2011 there are only 168 BMT registered in association. With refers to office development it could be concluded that there is significant fraction between Islamic banks development and Indonesia BMT Association member; where, theoretically BMT should be the only Islamic financial institution that could apply PLS mechanism in developing poverty reduction.
In general acknowledgement bank is intermediary financial institution that supposed to collect third party funds in term of saving and distribute those funds to the less capital party in term of lending or investment contracts; additionally, bank could provide several services in related to the financial circumstances. Islamic banking development provide a joyful alternative for Muslim community to prevent them from riba’ banking services. Almost Muslim today could save and invest their money in their preferred Islamic bank without no worries on riba’ through Islamic banks products. In the same time Islamic banks might secure their third party fund through Islamic portfolio or reinsure it to Islamic insurance. The market force and the prudent system promise further sophisticated Islamic banking development.
BMT or baitul maal wa tamwil refers to Arabic term, baitul maal means house of wealth or treasury and bait at-tamwil refers to house of wealth collection and distribution. BMT operate on the basis of Islamic cooperative with hybrid institutional function as baitul maal or business unit and baitut tamwil or non-profit financial institution. BMT grow in the middle of unbankable micro business community such as traditional market, central of handicraft, farm fields and others small business community. BMT help people to finance their small business and reduce their interaction with money lender.
With concerns to the fact that Islamic banking industry must reach their efficiency and profit maximization we believe that, it will be difficult for Islamic banking industry to contribute in poverty reduction real action; even though, they are promoting PLS mechanism as one of their investment product. The nature of Profit and Loss sharing mechanism is to share both full risk and return against the principle and central bank prudential principle; therefore, restrict Islamic banking industry to accommodate those unbakable party. BMT have its unique capacity on the basis on Islamic cooperative is the best pillar of national economy particularly in the alternative of Islamic economic development. We believe that a healthy BMT could apply PLS mechanism better
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