The role of baitul maal wat tamwil (BMT) in economic empowerment efforts in Indonesia

Abstract

This article aims to systematically review the literature on the role of BMT in economic empowerment efforts.  The systematic literature review used was obtained from searches in academic databases consisting of Emerald, Google Scholar, DOAJ, Springer, ResearchGate, and 25 articles were selected that were relevant to the title chosen by the researcher. The results showed that the role of BMT in economic empowerment efforts is carried out through financing, savings, as well as training, mentoring, and coaching. The financing distribution activities carried out by BMT to members as small business actors to develop or start their businesses have implications for people’s economic empowerment, namely increasing the productivity of small business actors, increasing community income, and to expand employment opportunities. Deposits are used to support members economies in the future as well as training, mentoring, and coaching which aims to improve members ability to manage their businesses and maintain their business continuity. However, empowerment efforts carried out by BMT cannot be separated from the existence of obstacles, namely the quality of BMT resources and limited capital. To overcome these obstacles, BMT applies several principles, the first of which is the principle of prudence, the principle of knowing the customer, and the internal principle. In addition, BMT needs to improve product offerings and carry out joint evaluations.