Developing BMT as a loss-profit sharing-based microfinance: an Indonesian experience

• DOI: 10.18326/ijtihad.v18i2.137-152
• Publication Date: 2019-02-18T07:21:24Z
• Authors: Husni Mubarrak
• Keywords: Profit sharing; Schema (genetic algorithms)

This article would like to discuss an Indonesian experience in developing Baitul Mal wat Tamwil (BMT) since 1990’s as alternative microfinance which based on loss and profit sharing schema that realized a more just economic system. research is conducted by both bibliographical overviews empirical investigations. paper elaborate how BMT developed maintained its capacity efforts, providing model instead of interest system had shown negative spread pseudo growth. This, however, requires emphasizing the main differences between systems (sharing interest). It also discusses upgraded competitively various attractive products sharing. The establishment Indonesia could not be separated from emergence “creative minority” “enlightened group” some campuses build 1984, later followed Muslim Intellectual Association (Ikatan Cendekiawan Indonesia/ ICMI) 1991. findings showed used real practical effort then has successfully developed, massively contributed largely triggered sector, especially for small medium scale enterprises (SMES) order poverty alleviation. reflected experiment early steps recognizing Islamic economy Indonesia. still survive, even when huge crisis struck particularly South East Asia generally 1997.