<![CDATA[Baitul Mal Wat Tamwil (BMT) has emerged as a vital player in Indonesia's economic landscape, offering Sharia-compliant microfinance solutions to small and micro-entrepreneurs. However, BMTs face significant challenges due to overlapping regulations and a lack of comprehensive support in promoting financial inclusion and fostering community welfare. These issues are intricately tied to several legal frameworks, including Law Number 1 of 2013 concerning Microfinance Institutions (LKM), Law Number 21 of 2011 concerning the Financial Services Authority, Law No. 25 of 1992 concerning Cooperatives, and Law Number 23 of 2011 concerning Zakat Management. This article employs a doctrinal approach to explore the regulatory obstacles hindering BMTs' development within the Indonesian legal framework. The findings indicate a pressing need for BMT regulations to be rooted in the cooperative legal structure, while simultaneously acknowledging its distinct financing functions under Law No. 1 of 2013 concerning Microfinance Institutions. By aligning BMT regulations with these legal principles, it will be possible to enhance their operational effectiveness and better support their mission of financial inclusion and community development, to empower BMTs to fulfill their significant potential in driving economic growth and improving the livelihoods of underserved populations in Indonesia.]]>
Copyrights © 2025
