A Study of the Legal Status and Liability of Baitul Maal Wat Tamwil (BMT) as an Indonesian Financial Institution

Abstract

BMT as part of a microfinance institution in carrying out its business activities is based on sharia principles. One of the types of financing contained in BMT is the profit sharing system (Mudharabah, Musyarakah), the mark-up system (Murabahah, Bai'u Bithaman Ajil, Ba'i Assalam, Ba'i Istishna '), the rental system (Ijarah). , and benevolent loans (Qard Al-Hasan) and others (Widiyanto: 2016). The business activity system used by BMT is almost completely the same as the work pattern found in Islamic banking in general, that is being an intermediary institution that functions to collect and distribute funds either to members or to the public in general. BMT financing comes from this intermediation function. The funds that are saved by the community to BMT in the form of savings, distributed to people who are in need of financing to develop their business.