INSTITUTIONAL LEGITIMACY AND REGULATORY FRAMEWORK OF BMT: A JURIDICAL-NORMATIVE STUDY

Erisa Ardika Prasada (Faculty of Law, Universitas Sriwijaya, Indonesia)
Muhamad Rasyid (Faculty of Law, Universitas Sriwijaya, Indonesia)
Santi Indriani (Faculty of Law, Universitas Baturaja, Indonesia)
Diah Ayu Setiowati (Faculty of Law, Universitas Baturaja, Indonesia)

Bengkoelen Justice : Jurnal Ilmu Hukum
Vol. 16 No. 1 (2026)

This study aims to analyze the history and transformation of Baitul Maal wat Tamwil (BMT) in Indonesia from the classical concept of baitul maal to a modern Islamic microfinance institution, as well as to compare it with microfinance models in other countries in order to identify its legal implications. The research uses a legal-normative approach supported by historical and comparative analysis. Data was obtained through a literature study covering legislation, academic literature, and policy documents related to BMT, as well as studies on Grameen Bank in Bangladesh and Amanah Ikhtiar Malaysia. The analysis was conducted using a qualitative-descriptive approach through historical-conceptual, normative, and comparative analysis stages. The results of the study show that BMT is a form of institutional transformation of the classical baitul maal, which originally functioned as a state fiscal institution, into a community-based Islamic microfinance institution that integrates social (maal) and business (tamwil) functions. The development of BMTs in Indonesia is bottom-up and gained policy legitimacy through the 1995 National BMT Movement. Compared to Grameen Bank and Amanah Ikhtiar Malaysia, which operate in conventional systems, BMTs have distinctive characteristics because they are based on sharia contracts and local community participation. The implications of this study emphasize the need for regulatory harmonization to strengthen legal certainty and BMT governance within the national financial system. Additionally, the BMT model has the potential to become an alternative for community-based economic empowerment that can be replicated in Muslim-majority countries. This study aims to analyze the history and transformation of Baitul Maal wat Tamwil (BMT) in Indonesia from the classical concept of baitul maal to a modern Islamic microfinance institution, as well as to compare it with microfinance models in other countries in order to identify its legal implications. The research uses a legal-normative approach supported by historical and comparative analysis. Data was obtained through a literature study covering legislation, academic literature, and policy documents related to BMT, as well as studies on Grameen Bank in Bangladesh and Amanah Ikhtiar Malaysia. The analysis was conducted using a qualitative-descriptive approach through historical-conceptual, normative, and comparative analysis stages. The results of the study show that BMT is a form of institutional transformation of the classical baitul maal, which originally functioned as a state fiscal institution, into a community-based Islamic microfinance institution that integrates social (maal) and business (tamwil) functions. The development of BMTs in Indonesia is bottom-up and gained policy legitimacy through the 1995 National BMT Movement. Compared to Grameen Bank and Amanah Ikhtiar Malaysia, which operate in conventional systems, BMTs have distinctive characteristics because they are based on sharia contracts and local community participation. The implications of this study emphasize the need for regulatory harmonization to strengthen legal certainty and BMT governance within the national financial system. Additionally, the BMT model has the potential to become an alternative for community-based economic empowerment that can be replicated in Muslim-majority countries. Keywords: BMT; economic empowerment of the community; Islamic microfinance.