Legal Entities for Baitul Maal Wat Tamwil Based on Sharia Principles in Indonesia
- DOI
- 10.2991/aebmr.k.200513.133How to use a DOI?
- Keywords
- legal entity, BMT, Sharia principles
- Abstract
The existence of BMT microfinance institutions is legally recognized by Regulation No. 1 of 2013 concerning microfinance institutions, as middle to lower financial institutions that can alleviate poverty. The problem arises when Article 5 paragraph [1] of Regulation number 1 of 2013 stipulates that microfinance institutions must be in the form of a limited liability company or cooperative. BMT operations that have been forced to join cooperatives have been problems that need to be resolved so that BMT can be optimally managed. Limitations of BMT movement patterns that use cooperative legal entity clothing will become BMT growth barriers in the land. So it takes an ideal business entity form that is specific to BMT itself.The result is the ideal form of BMT,Cooperative. Financial services born from the cooperative legal entity are expected to continue to meet the characteristics of financial institutions that adhere to the principles of sharia, in contrast to conventional financial institutions. These different characteristics are the basis for the need for a new legal entity capable of accommodating cooperative financial service activities. Sharia principles that are attached to the legal entity of Shirkah must be understood as the realization of adherence to Islam as a life guideline that regulates all aspects of life.
- Copyright
- © 2020, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Solikhah AU - Jamal Wiwoho AU - Pujiyono AU - Yudho Taruno Muryanto PY - 2020 DA - 2020/05/20 TI - Legal Entities for Baitul Maal Wat Tamwil Based on Sharia Principles in Indonesia BT - Proceedings of the International Conference on Law, Economics and Health (ICLEH 2020) PB - Atlantis Press SP - 701 EP - 704 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.200513.133 DO - 10.2991/aebmr.k.200513.133 ID - 2020 ER -