Enhancing the role ofBaitul Maalin givingQardhul Hassanfinancing to the poor at the bottom of the economic pyramid

Permata Wulandari

Journal of Islamic Accounting and Business Research, 2019, vol. 10, issue 3, 382-391

Abstract: Purpose - Baitul Maal wa Tamwil(BMT) is an Islamic microfinance institution created by combining the functionality ofBaitul MaalandBaitul Tamwilin Indonesia. WhileBaitul Maalplays the role of an institution that collects funds fromzakah, cashwaqf,infaqandsadakah,Baitul Tamwilthen distributes these funds in the form ofQardhul Hassanfinancing to the poor at the bottom of the economic pyramid (BOP). This study aims to explain the poverty alleviation effort by BMT regarding its role in providingQardhul Hassanfinancing to the people at the BOP and provide practical suggestions to maximize the outreach performance of the BMT. Design/methodology/approach - In this methodology, the study adopts the qualitative analysis of reviewing the literature and interviewing the BMT staff in Jakarta, Makassar and Nusa Tenggara Barat areas to present the views of the practitioners related to the role ofBaitul Maalin givingQardhul Hassanfinancing to the people at the BOP using appreciative intelligence framework. Findings - The study finds that BMT in Indonesia needs several stage-specific structures and roles to be effective. In particular, there is a need to separate the function ofBaitul MaalfromBaitul Tamwilto enhance its role when givingQardhul Hassanfinancing to the people at the BOP. The role ofBaitul Maalin alleviating the poverty figure is also drawn in this study. Originality/value - The findings of this study add to the literature onBaitul Maalby enabling researchers and practitioners to appreciate the role ofBaitul Maal, and these findings also contribute towards enriching the knowledge inBaitul Maaland financing requirements of the poor at the BOP. This paper also contributes to the field of Islamic accounting which is currently getting prominent.

Keywords: Qualitative analysis; Baitul Maal; Baitul Tamwil; Bottom of the economic pyramid; Qardhul Hassan (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jiabrp:jiabr-01-2017-0005

DOI: 10.1108/JIABR-01-2017-0005

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