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A Framework To Analyse The Efficiency Of Baitul Maal wa Tamwil (BMT) as Islamic Microfinance Institutions in Indonesia

Author (s): 
Atiqi Chollisni Nasution

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.

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