MODEL OF MANAGEMENT BAITUL MAAL WAT TAMWIL (BMT) FINANCIAL INSTITUTIONS BASED ON SHARIA PRINCIPLES IN POVERTY ALLEVIATION EFFORTS

Abstract

BMT has a characteristic compared to other financial institutions. The responsibility of the BMT institution is not just an earthly level but also a ukhrawi belief. The status of the BMT institution is unclear whether it enters the Micro Finance Institution, Cooperative or Business Entities. This type of research is empirical normative legal research. Normative legal research examines the rules that have governed BMT. Empirical legal research aims to formulate BMT based on sharia principles so as to provide optimal services to lower-level customers. The results of the study are BMT consisting of Baitul Maal and Baitul Tamwil. Baitul Maal functions to collect and channel social funds. Whereas Baitul Tamwil is a profit-motivated business institution, BMT supervision is carried out by the National Sharia Board. BMT guidance is routinely carried out by the ministry of cooperatives, the ministry of religion and the financial services authority. So BMT becomes an institution based on sharia principles with the aim of poverty alleviation in the community.