CEDS UNPAD

The potential of Islamic microfinance in West Java, Indonesia

BMT existences can not be separated from the activities of micro, small and medium enterprises. Noer Soetrisno, Deputy Ministry Of Cooperations and SMEs, explaining though proved to be economic support Indonesia in times of crisis, the role of BMT in contributing to the economic wheels moving, very real. While the banking ridden "fat" funds that could not be distributed, BMT take this opportunity. However, not only that the strategic value of BMT, one of the most special, BMT also become agents of development especially for poor society. Because people do not have access to financial institutions, they use the services of moneylenders to overcome the financial problems. The rise of moneylenders in the middle of the community resulted in more people falling prey to the uncertain economic problems and increase poverty. This paper aims to see the effect of BMT in West Java province on the poor. Using secondary data obtained from Absindo West Java, BPS (Statistics bureau), and also department of Cooperatives and SME West Java which is the head institution of the existence of BMT, showed that capital Variable, Number of Offices and also ZIS fund (Zakat, infak, and Sadaqah) are the variables that significantly effect on the poor.

Discussant: Alfiah Hasanah

 

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Center for Economics and Development Studies is a research center under the Department of Economics, Padjadjaran University, Indonesia. A leading research institute in Indonesia in the area of economics and development studies.
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