Proceedings of the 7th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2021)

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IMBT (Ijarah Muntahiya Bittamlik) Contract as a Strategy to Mitigate the Impact of the Pandemic Covid-19 on Financing of Islamic Micro Finance Institutions

(A Case Study in Indonesia)

Authors
Azhar Alam1, 2, *, Raditya Sukmana3, Ratih Sri Melani4
1Faculty of Islamic Studies, University of Muhammadiyah Surakarta
2Department of Islamic Economics, Universitas Airlangga
3Department of Islamic Economics, Universitas Airlangga
4Faculty of Islamic Studies, University of Muhammadiyah Surakarta
*Corresponding author. Email: aa123@ums.ac.id; azhar.alam-2021@feb.unair.ac.id
Corresponding Author
Azhar Alam
Available Online 8 March 2022.
DOI
10.2991/aebmr.k.220304.024How to use a DOI?
Keywords
Islamic Microfinance; Financing; Impact of Covid-19; IMBT Contract
Abstract

The purpose of this study is to describe financing conditions in Sharia microfinance institutions and investigate the IMBT contract as a countermeasure for problematic financing. This research uses a descriptive qualitative approach to acquire data through interviews with ten managerial parties from four BMT Yaummi Maziyah in Pati Central Java Indonesia and literature related to financing issues. This study showed that BMT Yaummi Maziyah experienced a decrease in targeted profits and an increase in financing problems that led to a decrease in profits. In the BMT, pandemic provided a policy of relief and feasibility to stabilize financing. BMT also makes a strategy as a countermeasure to problematic financing in IMBT products. IMBT contract products have the same as without guarantees due to limited capital guarantees of financing customers. This form of IMBT deed financing is in the form of providing a food business cart without guarantees and initial capital. However, financing is under the current pandemic conditions to help communities and customers affected by the pandemic. This research advises BMT to promote the type of business financed by IMBT contract form to benefit from pandemic covid-19.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 7th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
8 March 2022
ISBN
978-94-6239-549-7
ISSN
2352-5428
DOI
10.2991/aebmr.k.220304.024How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
TY  - CONF
AU  - Azhar Alam
AU  - Raditya Sukmana
AU  - Ratih Sri Melani
PY  - 2022
DA  - 2022/03/08
TI  - IMBT (Ijarah Muntahiya Bittamlik) Contract as a Strategy to Mitigate the Impact of the Pandemic Covid-19 on Financing of Islamic Micro Finance Institutions
BT  - Proceedings of the 7th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2021)
PB  - Atlantis Press
SP  - 178
EP  - 187
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220304.024
DO  - 10.2991/aebmr.k.220304.024
ID  - Alam2022
ER  -