CHALLENGES IN OPTIMIZING SOCIAL FUNCTION AT BAITUL MAAL WA TAMWIL

Abstract

BMT is an Islamic microfinance institution based on Islamic principles, integrating the concepts of business (tamwil) and social (maal). These two concepts automatically become unique aspects of BMT. Nowadays, there are issues regarding imbalanced functions in BMT. This phenomenon needs to be studied, considering the role of BMT in mobilizing funds for the poor and small and medium enterprises and reflecting the Islamic economic system in upholding justice. This study uses a qualitative research method with direct field studies. Data collection techniques use in-depth interviews. The results of this study indicate that the imbalance in dual functions in BMT occurs due to internal and external factors. The internal factors include inadequate and unstructured division of tasks between the employees, limited supervision by the Sharia Supervisory Board, the educational background of the employees not directly related to Islamic finance, and the BMT's orientation being more toward business functions. Meanwhile, the external factor is caused by a lack of public knowledge of the existence of BMT, both in terms of services provided and the form of BMT as an Islamic financial institution.