BAITUL MAL WAT TAMWIL (BMT) AND POVERTY EMPOWERMENT

Abstract

The aim of the study was to examine the role of Baitul Mal Wat Tamwil (BMT) on poverty empowerment in Demak, Central Java, Indonesia. The poverty empowerment was measured by increase of income levels, family education, health care, and business progress. This study used the sample of one hundred borrowers from 13 BMT were taken into consideration and questionnaires were distributed among them using purposive sampling method. Out of 100 questionnaires distributed, the researchers received back 74 responses. The empirical tests indicated that BMT has a significant role on improving income level, family education, and business progress. However, the study did not find any significant role of Islamic microfinance on access to health care. Implication, limitation and suggestion for future research are discussed.Keywords: Islamic microfinance, poverty, income levels, children’s education, health care, and business progress