The Regulatory Reconstruction Of Baitul Maal Wa Tamwil (BMT) Towards Efforts To Protect The Community

Abstract

This research examines and answers the problem of the unalignment of the Baitul Maal wa Tamwil (BMT) regulations with the sharia principles towards providing community protection and how the reconstruction model fixes this. The results concluded that the BMT regulation was unharmonized with these principles and the causative factors were a shift in function and meaning, the existence of a legal vacuum, as well as the absence of specific regulatory rules. Subsequently, the ideal governance model is based on shariah principles. BMT consists of Baitul Maal which functions to collect and distribute social funds, along with Baitul Tamwil which is a profit-motivated business institution. Furthermore, BMTs are entitled to perform economic activities such as trade, industry, and agriculture, and as a result, have become sharia-based institutions intending to alleviate poverty and provide protection to the community.