The Role of Baitul Mal Wat Tamwil Agromadani Through Murabahah Contracts in Micro, Small and Medium Enterprises in Tanah Merah Village, Rimba Melintang District, Rokan Hilir Regency

Abstract

The objective of this research is to examine how Baitul Mal Wat Tamwil (BMT) Agromadani contributes to the growth of MSMEs in Tanah Merah Village, Rimba Melintang District, Rokan Hilir Regency. Data were gathered using a qualitative method including observations, interviews, and documentation. The results of the study indicate that murabahah financing offered by BMT Agromadani contributes significantly to increasing the business capacity of members. This financing is divided into several types, including productive and consumptive financing, which are adjusted to the needs of members. In addition, this study found that the empowerment program carried out by BMT not only increases access to capital, but also encourages members to be more active in developing their businesses. However, there are several limitations, such as the risk of loan repayment and members' dependence on external financing. This study is expected to provide insight into the development of policies and practices in supporting MSMEs through Islamic financial institutions.