Development of MSMEs (Micro, Small and Medium Enterprises) by Baitul Maal Wat Tamwil (BMT) as an Instrument for Poverty Reduction

Abstract

MSME is a sector that plays an important role in economic development in Indonesia, seen from the significant contribution in employment. Accounted GDP, foreign exchange and giving donations. In carrying out its role, the MSMEs sector did not grow and develop without having a problem despite the development contribution is quite large. The problem that often occurs in the MSMEs sector are relatively complex, ranging from human resources issues, access to capital, business culture and management capability as well as fund management business that is mixed with household finances. This is what needs to be addressed by the related parties on an ongoing basis. It needs a real movement and implementable, one strategic effort to do is through the optimization of the role of Islamic Microfinance Institutions (LKMS) is Baitul Maal wat Tamwil (BMT). Given the banking institutions have not been able to touch the bottom of society (poor, poor and other dhu'afa). Their access to banking is very small, almost nothing at all. They also do not have collateral and are not good at making proposals. But with the BMT, they tried to improve the well-being of its clients with financing and assistance to customers.