The Role of Islamic Microfinance Institutions in Economic Development in Indonesia: A Comparative Analytical Empirical Study on Pre- and Post-Financing States
Different institutions are engaged in the development efforts in Indonesia by appealing to different sectors of socio-economic life. Among such institutions, BMT (Baitul Maal wa Tamweel) and BPRS (Shariah People Credit Bank) are the main players of the shariah micro-finance institution in Indonesia. However, these two institutions are different in nature: whereas BMT is a shariah cooperative with only limited support, regulation and monitoring, BPRS is a bank which receives sufficient support, regulation and monitoring from the Central Bank.