ISLAMINOMICS: JOURNAL OF ISLAMIC ECONOMICS, BUSINESS AND FINANCE

A FRAMEWORK TO ANALYSE THE EFFICIENCY OF BAITUL MAAL WA TAMWIL (BMT) AS ISLAMIC MICROFINANCE INSTITUTIONS IN INDONESIA

Atiqi Chollisni Nasution

Keywords: Efficiency, Microfinance, Islamic Microfinance, BMT

Abstract

This paper aims to present a conceptual model on the efficiency of BMT as
Islamic microfinance institutions in Indonesia. In the last twenty years, the
growth of BMTs increase significantly and have contributed positively to the
development of socio economic of the country. Recently, there are around
4,000 BMTs operate and have enhanced thousand poor people life. BMTs
responsible in collecting, managing and distributing the funds either for
charity or providing financial services for the poor. The paper identifies the
appropriate methods to evaluate efficiency of BMTs, such evaluation of
Islamic microfinance institution to function effectively to achieve socio
economic objective. The findings are not only relevant and applicable to
Indonesia but also to other muslim countries and would be useful for further
empirical research in this area.