THE ROLE OF BAITUL MAL WAT TAMWIL (BMT) IN COMMUNITY ECONOMIC EMPOWERMENT IN INDONESIA

Abstract

BMT emerged as a result of the development of BPR (Mujiono, 2017). In Indonesia, the term BMT is commonly used in the cooperative sector. BMT, which is the legal body of the cooperative, signifies its legal validity, thus placing it within the framework of the regulation of Cooperative Law No. 1. [enter applicable statute number]. In order for each BMT joint to uphold the spirit of family cooperation in accordance with the MUI National Sharia Council (DSN) fatwa and sharia principles, it needs to be obeyed by 1992. This ensures the nature of cooperatives owned by BMT. BMT remains rooted in members' participation and benefits. This study plans to give an outline by utilizing inductive reasoning, by seeing explicit examples to the overall population, where issues or cases found in view of explicit realities will then be analyzed for the issue to be tackled Baitul Mal Wat Tamwil operates as an independent business center aimed at stimulating productive business and investment for increased economic activity among small and low-scale entrepreneurs. Among its functions, the center aims to improve the economy of small businessmen by promoting savings and investment practices. BMT economic activities must receive complete support from all walks of life, including legal and operational assistance, as Indonesia operates within the framework of family economy. In the explanation of Law Number. The Cooperatives Act of 1992 emphasized the importance of the role of cooperatives as a fundamental component of the national economy and a vital element in the national economic system.