Role of Islamic microfinance institution in poverty alleviation and enhancement of well-being: case of Islamic Financial Cooperative (BMT) in Indonesia
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All human beings in this world deserve a better physical and social well-being particularly the quality of life. By having proper quality of life, the advancement of individual's physical and mental aspect can be assured. As such, the chronic social disease called poverty must be expelled. In Indonesia, Islamic Financial Cooperative which is known as Baitul Maal wat Tamwil (BMT) has been influential in alleviating poverty by providing financing access and social development programs to the poor, low income and the un-bankable. This paper purports to show that Islamic Microfinance Institution (IsMFI) particularly BMT has contributed towards poverty alleviation as well as enhancement of members' well-being and quality of life. As such, it becomes interesting to firstly find out whether the members have significantly increased their income after gaining financing access from BMT. Secondly, are they satisfied in terms of their physical well-being (PWB) and social well-being (SWB). Data from 750 respondents were analyzed using SPSS software. The study found that the members' Income after joining BMT has significantly increased. It also showed that majority of the members were satisfied with their PWB and SWB after joining BMT for several years.
Case Study , Indonesia , Financing , Islamic microfinance , Poverty , Well-being , BMT
Quraisy, M., Alhabshi, S. O., & Shaikh Abdul Razak, S. H. (2017, May 16-18). Role of Islamic microfinance institution in poverty alleviation and enhancement of well-being: case of Islamic Financial Cooperative (BMT) in Indonesia [Paper presentation]. 19th Malaysian Finance Association Annual Conference (MFAC) 2017, Perak, Malaysia.