Baitul mal wat tamwil: A Sociological and Social Welfare Movement?

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SOCIOLOGY AND WELFARE

DEVELOPMENT

Edited by:

Muhamad Fadhil Nurdin Centre for Socioglobal Studies

Padjadjaran University

Foreword by:

Dr. Afriadi Sjahbana Hasibuan, MPA, M.Com (Ec)

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ii Sociology and Welfare Development

First Published May, 2015

Published By

Centre for Socioglobal Studies Padjadjaran University

In Cooperation With

Penerbit Samudra Biru (Member of IKAPI) Jomblangan Gg. Ontoseno Blok B No 15 Rt 12/30 Banguntapan Bantul Yogyakarta Indonesia 55198 Telp. (0274) 9494 558

E-mail/FB: psambiru@gmail.com

ISBN: 978-602-9276-56-5

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Sociology and Welfare Development

LIST OF CONTRIBUTORS

Agung Mahesa Himawan Dorodjatoen, is aPhD candidate at West Australia University, Perth – Australia. He is a Planning Staf, Directorate of Spatial Planning and Land Afairs, Indonesia National Development Planning Agency (Bappenas). He is a Best Graduate Student in Regional and Planning Department, Bandung Institute of Technology (2006) and Utrecht Excellence Scholarships Awardee 2007-2009 on Research Master Human Geography & Planning, Faculy of Geoscience, Utrecht University.

Ali Maksum, is a Ph.D candidate at the Centre for Policy Research and International Studies (CenPRIS), Universiti Sains Malaysia, Penang. His current project is about the Indonesia-Malaysia relations from defensive realism perspective. He has written articles have been published in such publisher as Kajian Malaysia: Journal of Malaysian Studies, Springer (ISI), Indonesia national newspapers and conferences.

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HIV/AIDS and drug related issues.

Bintarsih Sekarningrum, a leturer at Social Welfare Departement in Social and Political Sciences Faculty, University of Padjadjaran. She obtained Bachelor degree, master degree and Doctoral degree from University of Padjadjaran. Some scientiic papers had been published at national or international level. Currently, he is focusing on waste management problem in society who life near the Cikapundung river at Bandung City.

Desi Yunita, oicially join the Departemen of Sociology at Social and Political Science Faculty University of Padjadjaran since 2014. She got Magister degree in Sociology also from University of Padjadjaran and focusing the research on development and environmental problem.

Forina Lestari, obtainedB.Sc.Eng. (ITB, 2006), MSc in Housing, School of Housing, Building and Planning, University of Science Malaysia (USM, 2008). Lecturer at Indonesian Institute of Technology (ITI). She has published a book: Alam Takambang Jadi Guru: Merajut Kearifan Lokal dalam Penanggulangan Bencana di Sumatera. Consultant and expertise at Directorate of Rural and Urban Afairs, Indonesia National Development Planning Agency (Bappenas) and Directorate General of Spatial Planning, Ministry of Public Works(2013), Directorate General of Regional Development Assistance, Ministry of Home Afairs and Expert, Deputy of the Area Development, Ministry of Public Housing (2012), Expert Staf, Commission V (Infrastructure), he Indonesian House of Representatives (DPR, 2011). Junior Expert, Directorate of Rural and Urban Afairs, Indonesia National Development Planning Agency (Bappenas, 2010).

Hery Wibowo, S.Psi, MM, PhD isa leturer at Departement of Social Welfare Faculty of Social and Political Science, Padjadjaran University.

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Mitshel Lino is a Master of Social Sciences (Psychology) candidate under the supervision of Assoc. Prof. Dr. Intan Hashimah Mohd Hashim from the Department of Social Work, Universiti Sains Malaysia. Her research interest surrounds the ield of Social Psychology. She was a Graduate Assistant, serving as a Psychology tutor in the university. She was invited to the Golden Key International Honour Society for academic excellence and awarded Second Upper Class Honours from her undergraduate. Her past researches included the area of Multicultural Psychology and Child Marriage in Malaysia, collaboration project with UNICEF.

Mohd. Haizzan Yahaya MSW is Ph.D scholars from University Sains Malaysia. He is currently researching on Urban Poor Housing and being supervised by. Muhamad Fadhil Nurdin, PhD and associate professor Azlinda Azman, PhD

Mohd Tauik Mohammad is a Ph.D scholar at the Social Work Programme, School of Social Sciences, Universiti Sains Malaysia. His current Ph.D studies regarding on Specialization Social Work, Forensic Social Work/Victims’ Studies/Restorative Justice, being supervised by associate professor Azlinda Azman, PhD.

Muhamad Fadhil Nurdin, MA and Ph.D. from University of Malaya. He is a leturer at Departement of Social Welfare (1982-2011) and Departement of Sociology (2011-present), Head Departement of Sociology in Faculty of Social and Political Science, Padjadjaran University (2014- present). Visiting Associate Professor at University of Malaya (2008) and Visiting Associate Professor at Univerisiti Sains Malaysia (2012- present).

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Current Public Services are Facilitator, Comprehensive Maternal Village Program in West Java, West Java Province Health Department (2006 – 2008), Facilitator for Sustainable Capacity Building for Decentralization (SCBD) Project in Bau-bau City and Buton Regency (2008 – 2012), District Advisory Team Capacity Building Program Minimum Service Standard Basic Education at Sorong West Papua (2014-2016), tdevianty@ rocketmail.com.

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ACKNOWLEDGEMENT

Alhamdulillah. hanks to Allah SWT, whom with His willing

giving me the opportunity to complete this book entitled Sociology and Welfare Development. he publication of this book would not have been possible without the guidance and knowledge wich I have acquired from my honourable professors; Professor A.D Saefullah - University of Padjadjaran and Professor Abd. Hadi Zakaria - University of Malaya. I would also like to dedicate this book to my beloved wife, Tuty Tohri and our lovely children Tofan Rakhmat Zaky, Forina Lestari, Fitaha Aini and Tamal Arief Ihsan - their support in my life.

he publication of this book would not be possible without the assistance and cooperation that we have received over the years from the many individuals and organization in various parts of the world. In particular, we wish to thank our team, all authors - Department of Sociology Padjadjaran University and Universiti Sains Malaysia. Specially thanks especially to Ali Maksum for his excellent assistance during the editorial process of this book. Dr. Arry Bainus the Dean of Faculty of Social and Political Sciences, Padjadjaran University. All of my Masters-PhD students and colleagues at Padjadjaran University as well as USM whom I would like to thanked for providing continuous support towards my success.

Wassalam.

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FOREWORD

Dr. Afriadi Sjahbana Hasibuan, MPA, M.Com (Ec)

Head of Research&Development Ministry of Home Afairs,Republic ofIndonesia

First of all, I am honored to write this foreword and to give my warm endorsement to this book edited by my colleague Muhamad Fadhil Nurdin, Ph.D. In my point of view, Indonesian harmony is urgent and should be achieved soon. he government and all stakeholders are pushed to react and formulate a strong policy to reach the national goals.

his book provides a comprehensive assessment regarding sociology and welfare development discourses with a new paradigm and approaches to build Indonesian future. his compilation chapter divided into ifteen chapters, conclusion and also given constructive policy recommendations. Although, all authors in this book are depart from various background and issues, yet they produce and extent some challenges should become serious attention especially the government. I can argue that this book is very multidisciplinary and discussed from various angle.

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welfare development discourses is smartly promoting the ideas of “spiritual development” which in some extent isolated from main discussion. his is important and also to alerting as well as to underscore that Indonesia is a religious country.

Finally, I am pleased to congratulate to Muhamad Fadhil Nurdin, PhD which successfully publish this book and demonstrated that he is a productive scholar. As academician, lecturer and researcher he has more than thirty years professional experiences in the ield of social and political sciences in Indonesia as well as recognized in the broad. I hope, the collaboration between the agency of research and development in the Ministry of Home Afairs of the Republic Indonesia with the Centre for Socioglobal Studies - Padjadjaran University become more efective, fruitful and sustain in the future.

hank you and Wassalam.

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INTRODUCTION

In the Name of God, the Most Gracioeus, the Most Merciful

his book provides a thematic issues and challenges in the new era, sociology to develop human welfare. he main objective of the Sociology and Welfare Development is to present an integrated analysis of how the discipline of sociology can contribute to our wider understanding of the variety of welfare development issues, practices and institutions approachs, policies and philosophy wich exist in our society and countries. his explanatory chapters expected to examine and understand as well as ofer choices for human beings in the dinamics world to build a human welfare.

his book depart from the point of view that sociology is as applied social science can contribute to the development of human life through many perspectives. he various theme have been selected are discussed from philosophy to policy models. Each chapter attempt to understand with a core idea namely welfare development.

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policy implementation, bureaucracy and corruption. Yet, all indicates that Indonesian government has taken a serious strategic action in order to struggle to eradicate poverty as well as eradication policy against chronic of corruption.Related withpoverty phenomena, in the chapter nine, concern on historical and inherited problems such as the disabled people, the pursuit of full employment in urban areas and overstaing in the public sector, were important causes for urban poverty. However, these historical problems did not result in serious poverty under the well planned economic system. he number of poor people inherited from the previous period was also relatively small.

In the third chapter focus onhuman geography and planning as part of human life. Sociologically, this study concludesthat the relationships between two adjacent metropolitan centres are two geographical phenomena occurred in the Jakarta-Bandung Mega-Urban Region (JBMUR). However, a rapid urbanization process has also been occurring in the corridor area between both metropolitan centers. here are both direct and indirect relations between these two geographical phenomena which inally lead to the emergence of the Jakarta-Bandung mega-urban region. In the fourth chapter, that in addition, the struggle of urban poor communities in Malaysia for housing and land rights is closely related to the development and history of the country. After the British colonial period, Malaysia’s priority was to develop its economy by focusing on the manufacturing and export industry in urban areas. his resulted when people from rural areas migrating from village to the city, in search of opportunities and to ill the workforce demand. Most of the urban migrants would build their own house near the manufacturing factories, because the surrounding lands were unoccupied and unused. With hard work and their own resources they would clean the area (wilderness) and build houses; this would encourage the development in the area and hence they are known as urban pioneers.

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obtained inancial assistant from micro LKMS or BMT.

Chapter six examines the environmental destruction of young generation to protect and conserve the natural environment. As such, the key actors in engaging youth participation in environmental action, be it the government, non-governmental organizations (NGO’s) or the community, should address the multi-dimensional issues that are obstacles towards the involvement of the young and come up with strategies to develop a more intrinsically-motivated participation. Generally, environmental awareness among youth worldwide is at an adequate level but it is the translation into action that is still lacking. A review of the implementation strategies of current environmental action programs involving youth should be done by the respective organizers in order to create programs that are fun, hands-on and allows as well as entrusts youth to apply their environmental knowledge and personal skills to make key decisions for the future of then environment which they shall inherit from the present. Hence, there is a need to move beyond the present, traditional top-down institutionalized approach of implementing programs towards a more dynamic and lexible approach in which youth are viewed stakeholders, knowledge sharers and leaders, and not mere passive participants who carry out the aims dictated by the organizers.

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rural community towards education as a strategy for improving life. At the same time, the delivery system of the education programs must be enhanced and it is all depend on the commitment of the school and teachers of the rural schools as well.

Finally, the last chapter focus on the incidences of child marriage are no longer pertinent only for less developed country; it actually happens extensively in diferent parts of the world. Due to psychological and biological immaturity, children are insuiciently mature to make an informed decision about a life partner.

his book examines the welfare development issues in the broader “sociology of welfare development” perspective. It is compiled from travelers and knowledge experiences in international seminars, talks and forum of researchers, supervisions and other discussion with my PhD and Master students. hat experiences, together with their personal values and interests extremely inluence to all authors in this book. Personally, I hope that those who engage and read this book will obtain fruitful knowledge. All errors are the author’s responsibility.

Wassalam.

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Baitul Mal wat Tamwil

Readers guide

Uniication of development based on modernization - that disseminated by the western world, it has not been successful to the welfare of developing countries. Uniication of the development pattern of coercion ‘modern lifestyle’ was evidently not applicable to another countries that has the problems are diferent. Actually, it is “backire” and make the higher gap between developed and developing countries. However, every person and nation must survive. Forced by situations that occur, each developing countries, with diferent strategies trying to capitalize on its strengths to the welfare of its people. herefore, due to the complexity and diversity of the social problems that must be addressed, and people have to survive. Naturally, the local born leader/ entrepreneur indeginoeus trying to meet the

Baitul Mal wat Tamwil:

A Sociological and Social Welfare

Movement?

Hery Wibowo and Muhamad Fadhil Nurdin

Chapter

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needs of himself and the surrounding communities. hey are individuals who are embarrassed to see injustice and hopes on government assistance. Growing awareness that every society has the potential, the open low of information between individuals and increasingly interlinked in diferent parts of the world, are the things that trigger the growth of movements of social problem-solvers / fulilling the needs of the community that became known as the Social Entrepreneur of this. his movement grew out of conditions that do not get better and the situation is not also prosper. From year to year, the movement is increasingly in diferent parts on the world, and not least in Indonesia which has the ifth largest population in the world and has the world’s largest Moslem. One representing the spirit of this movement is the movement of Baitul Mal wat Tamwil (BMT), which institutes Shari’ah-based microinance community. Since 1995 in Jakarta, the BMT movement, now has its appearance in almost all provinces in Indonesia. As a communities movement, and then within twenty-ive years to expand throughout Indonesia, of course this is something interesting. his chapter, will explore the development, impact and challenges of BMT movement in Indonesia. hey also shelled carrying capacity as well as a threat to the existence of BMT in Indonesia.

Introduction

Indonesian development journey as a nation, is still far from expectation. Some various economic indicators, shows that Indonesia still has a lot of homeworks that need to be resolved in order to reach the objective as it being mentioned in the Indonesian Constitution of 1945. Based on the Human Development Index Indonesia placed the 124th_out

of 187 countries, life expectancy: 69.4 years, per capita income: US$ 3716, population: 242.3 millions (Hery Wibowo, 2011).

It is clear that our nation has work to complete a variety of needs and problems. As a country that has a vast territory and natural resources are virtually unlimited, then it is itting for us to not be in the order of 124 from 187 countries. Modernization schemes ofered and somewhat ‘forced’ by the western countries at the beginning of independence, has been shown to have not managed to prosper the people of various levels.

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problems. he irst sector which is expected to be the pioneer, has not yet reliable (Hery Wibowo, 2012)

hat is, must have realized that the eforts of the uniform patterns of development (Uniication of development), from developed to developing countries - have much left. Development scheme which is based on the potential of each country is an efort to ‘modern colonialism’ that need to be aware of its negative impact. In fact, furthermore, the pattern of modernization has also proven to be highly vulnerable to inancial crisis a few years back are sweeping the world:

he completion of the acute economic problems can no longer rely upon the giant corporations (giant corporation) or other business organizations such as the formal inancial institutions. herefore, these institutions are experiencing conditions ‘uyuh’ as a domino efect, either directly or indirectly, from the global inancial and economic crisis (Muhammad, 2009)

Based on the above ideas, it is clear that each country-especially in developing countries - must be very serious in designing development strategies. In addition, be careful here too, including when assessing and considers western development theories that do not necessarily correspond to the conditions and situation in Indonesia, especially considering the inancial crisis that has always haunted. It is recognized that some countries are beginning to realize this and then form a movement of ‘shared awareness’ as is done with the MDG’s agenda. Nevertheless, you still need a special glasses to be able to review the entire movement with a more clear and sharp.

When the movement to eradicate poverty and unemployment to the international agenda through a number of programs that published forum MDG’s, it was the inability of capitalism save itself create poverty and unemployment getting out of control, the doctrine of invisible hands that are considered efective to improve the economic mechanism is not capable of being an interpreter savior, even deregulation echoed the capitalist countries did not really happen (Muhammad, 2009)

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economy / community sector).

his paper will discuss one of the organizations representing the third sector and has encouraged social change in Indonesia: BMT.

BMT as Islamic Microinance Institutions

Associated with development issues in advance, in which many developing countries started to move up from the ground up, the discourse of microinance institutions began to receive attention as one of the instruments that can drive improvements in public welfare

Microinance institutions according to Antara (2000) is a inancial institution and inance, established and jointly owned by members of the community to solve problems / constraints of capital and funding requirements faced by its members. Asian Development Bank (Asryad, 2008:24) deines microinance as the provision of inancial services in a wide variety such as savings, loans, payment services, money transfer and insurance to poor households and low income and their micro enterprises. ADB deinition includes low-income households and households that are below the poverty line because there are quite a lot of low-income households that are not under the poverty line but have limited access to inancial services, especially in rural areas.

In fact, several studies have shown that the development of Islamic inancial institutions based economy is pretty awesome. his development, not only in the context of quantity but also on the type of institution, as revealed in the study Nurkholis (2009:1):

he development of Islamic inance (banking) in Indonesia, through recent has been spectacular. here are four types of Islamic or Shariah banks in Indonesia. hey are Islamic commercial bank (BUS), Islamic banking units (UUS), Islamic rural banks (BPRS), and Islamic microinance institutions (BMT).

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as a proit-oriented inancial institution, is also oriented to addressing poverty, mental change and the poor consumptive lifestyle to -oriented productive eforts lifestyle (Muhammad, 2009:28).

Applying concepts of shari’ah has the objective, among others (Muhammad, 2009: 28) (1) MFI Shari’ah itself as an institution in addition to mediating a business that aims to help the economic players also serves as a micro-business institutions that perform the injection of religious values and human values in order to avoid practices that are considered contrary to Islamic law such as usury, maysir and gharar (deception) (2) Second, MFIs Shari’ah into the economic institution that seeks to bridge the gap of economic access to formal inancial institutions (banks) (3) Opening a greater chance of trying to micro-entrepreneurs the majority of the poor Based on the above narrative, it is clear that BMT is an Islamic microinance institution whose presence is required by the various walks of life in Indonesia.

BMT as a representation of the hird Sector he third sector is an area outside the government sector or private sector. his sector is called the third sector to accommodate the various movements/organizations or activities that are beyond the characteristics of the irst and second sector

hird sector, has various kind of name, such as non proit sector, third system, community sector, social economy etc. Briely said, the third sector is a sector which have diferent characteristic from the irst and the second one. Stone et al (2007 in Rory, 2010) suggest that although the third sector has existed for some time, there is insuicient empirical research or theory to fully understand it (Hery Wibowo, 2012)

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Figure 1: Organizations of the public, private and third sector (Rory, 2010)

Third sector (third system) Campaigning groups

Business ventures (mining, manufacturing, business services, consumer retailing) Organizations that depend on trading (rather than taxation, state or grant funding)

Based on the diagram demonstrate that each sector can contribute to the development of the scope and capabilities of each. Sometimes these contributions intersect, but often at some speciic aspects of these contributions is given by a particular sector (unreplaceable).

David McClelland for example, a prominent sociologist, said that the absence of a developed nation, is not determined by its natural resources, rather than the number of people who have a high need of achievement. hat is, it takes people who are able to move quickly, not dependent on the government, have a high need for achievement and are ready to beneit the people around him. Figures like these that are needed by developing countries such as Indonesia, especially as the country’s vast territory and enormous natural potential of an almost unlimited, but has not been optimized. In contemporary language, a igure that discussed above, is the igure that drives the third sector.

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BMT as a Representation of Social Entrepreneurship

As has been shelled in the discussion above, it has been realized together (without downplay the role of government), it is diicult for a nation’s government to be able to pay attention to the interests of citizens of all nations and meets all the needs of its people. It means that - apart from the completion of the government in its eforts for the welfare of the people - carry out development programs for all Indonesian people is not easy to be implemented in a short time. he phenomenon was not only an upfront hit Indonesia. Some third world countries are also experiencing more or less similar fate, which is a phenomenon in which development is carried out have not been able to eradicate poverty on the people.

In response to the situations / conditions where it is diicult for a state government meet the needs of all people, then, naturally began to appear engaged local leaders and the practice of entrepreneurship within the umbrella of social entrepreneurship. hey have a brilliant idea and the idea intended to solve the social problems around their social environment. For some people, this is referred to as the movement that best represents the third sector social entrepreneurship movement, or on several occasions referred to the local leaders.

Local leaders are those who are able to see and discover the potential of the area (both natural resources and human resources) to then be developed in order to address local problems faced. his is justiied by Alex Nichols (2006: xlix) which states that:

Our best hope for the future of humanity lies in the power and efectiveness of socially motivated, highly empowered individuals who ight for changes in the way we live, think and behave.

Furthermore, this movement began to bloom developed in various regions of the world, including in Indonesia. SWA (swa.co.id, downloaded on January 6, 2011) states that social entrepreneurship is further proven able to cure many social ills such as poverty, underdevelopment and public health. In addition to the movement and excitement that began worldwide, the sector that it included even bigger, a case the following explanation:

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Public sector adoption of business skills •

Socially airmative business or business focusing on social ends •

he voluntary and not-for proit sector adopting more entrepreneurial •

approaches

Based on the above explanation, it appears that the social entrepreneurship movement began to spread to various sectors, ranging from public sector to adopt business skills, and corporate / business institutions began to direct its objectives on social beneits, and voluntary / nonproit sector is beginning to use the approach-entrepreneurial approach. But one thing that, whatever the sector, this movement has a major passion for illing the recesses of the development programs that have not fully succeeded in meeting the needs of society.

For social entrepreneurs the social mission is explicit and central. his obviously afects how social entrepreneurs perceive and asses opportunities. Mission related impact becomes the central criterion, not wealth creation (dees 1998a:2 dalam Nichols, 2008:13)

So it is said that for the (movement) of social entrepreneurship, social mission (or a target for beneicial social purposes) is explicit and become the main focal point. his is what afects how social entrepreneurs perceive and measure opportunities. Mission is closely related to the social implications of a major criterion, not wealth creation for shareholders and proit maximization. Accordingly, various models, shapes and types of social entrepreneurship began to lourish in Indonesia, ranging from agriculture, animal husbandry to Islamic microinance institutions.

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to support the economic system that has been used previously.

It can be said that non-governmental institutions, especially the move in the area of microinance, has the potential role that no doubt to be able to help small communities. Because their presence is directly or indirectly to open a small public access to inancial institutions. Chairman of the Economic Community of Sharia, Mulyaman Hadad (Kompas, Saturday, January 24, 2009) suggest that micro-inance approach grounded in fact more than a formal approach for small community banks. herefore, the approach to microinance more accessible and felt comfortable by the small community. Besides the potential inancing of microinance institutions is enormous, because the inancing of the formal banking sector only 40 percent. he rest are met through informal sources of inancing. his means that the existence and sustainability of microinance institutions is very important.

Related to Islamic economic discourse, to this day, has had 4 Indonesia Islamic banking system, as revealed by Nurkholis (2009: 1) the following: (a) Islamic Commercial Bank (BUS) (b) Islamic Banking Units (UUS) (c) Rural Islamic Banks (SRB) (d) Islamic Micro Finance Institution (BMT) Among the four types of these, the most capable of serving the grass roots is BMT, as revealed in the study Nurkholis (2009: 2) as follows: BMT is needed by the society of Indonesia Because these rationals, namely (1) here are more then 43.22 Millions of micro entrepreneurs in Indonesia (2) here area just a few banks having good attention and having willingness to Provide micro-credit scheme for entrepreneurs.

hat is, for countries such as Indonesia, BMT is still a very broad market. However, establishing and developing their own BMT is a struggle in an era of people who are more familiar than the conventional bank Islamic sharia-based system. So people tend to be extra careful in choosing a inancial institution, prior to that have not been too familiar.

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two missions, namely carry-proit mission and social mission. his means that the challenges to progress and development, much larger than pure business institution.

BMT as a Social Enterprise

In general, BMT is a microinance institution that operates under Islamic principles. Compatible with the name, then the BMT consists of two functions (Irawan, without the years: 4.3-3) (a) Baitut Tamwil (Bait-house, at Tamwil = property development) development activities productive ventures and investments in improving the economic quality of micro and small entrepreneurs, among others, encourage saving and inancing to support economic activity (b) Baitul Maal (Bait = home, Maal = treasure) to receive zakat funds deposited, infaq and Sadaqah and to optimize its distribution in accordance with the rules and amanahnya.

BMT as part of the Social Change

Various changes have been studied can be expressed as the face of social change. Hawley (1978:787 in Sztompka, 2004) states that social change is any change that does not happen from the social system as one entity. he below details are social change explanation by Sztompka (2004):

Social change is a transformation in the organization of society, •

the patterns of thinking and the behavior at a given time (Macionis, 1987:638)

Social change is a modiication or transformation in the •

organization of society (Persell, 1987:586)

Social change refers to the variation in relationships between •

individuals, groups, organizations, culture and society at a given time (Ritzer, et.al, 1987:560)

Social change is a change in behavior patterns, social relations, •

institutions and social structure at any given time (Farley, 1990:626)

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frame. Relecting on this, it can be said that the growing phenomenon of BMT in Indonesia is a representation of the social changes that potentially prosperous nation. BMT, in this case is a community-based social enterprise, it is seen from the condition that required for the formation of BMT involving at least 20 members of the public to be the founder of start-up capital. he twenty men then depositing them in the form sispoksus capital, principal or special deposits. he involvement of 20 members of the community, implying that without the consent of the community, it is unlikely that a BMT would stand in a certain region. However, in its development, as it may deem necessary and can help the community, some of the BMT began to be established with the help of certain parties. Here is a complete data:

Table 1

he Growth of BMT’s asset in Indonesia

Total

BMT was established NGOs

BMT aset > 1 B BMT aset 500 M

- 1 B BMT aset < 500 M

605 717 1.636

Based, upfront table it appears that there are more than 600 BMT which has assets of more than 1 billion. It is certainly remarkable considering BMT usually initial capital below 25 million. Today has been spread over 3000 BMT throughout Indonesia, with assets (consolidated) of more than 1 trillion, with the number of managers of more than 30,000 people, nearly half of S-1 and women (Amin, 2008) .

he author considers this is something that is extraordinary, considering that BMT is a microinance institution based society, the establishment is really bottom up. he following is the result of research Amin (2008) related changes in the mindset of the managers of BMT. It was found that the success story of BMT is due to of:

Operationally capable of implementing sharia in proportion, 1.

which is based on adequate ruhiyah strength of its management board and

Commitment and high ghiroh of managers, which stemmed 2.

from the realization that too is pretty good ruhiyah

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SWT through improved economy and improved quality of people

Widespread support from the aghnia and local community 4.

leaders, including companies that are nearby

Management capabilities and technical skills of inancial 5.

institutions managers and the managers are supported by adequate training and are supported by a complete theory, practice and MMQ (Method of Understanding and practicing the Qur’an)

Islamic ukhuwah among administrators, managers, pukosma, and others.

Based explanations in advance, it seems clear that the presence of BMT has been a dynamic factor of social change, at least in terms of changing mindsets. hat is, this is an institution that level of success, to be followed by changes in patterns of thinking people, that without it, very hard to achieve success. Furthermore, the authors argue, that sociologically, the movement is marked by the birth of BMT waves throughout Indonesia, it has become a social movement. Social movements are collective actions that are loosely organized, without any institutionalized way to produce a change in their societies (Sztompka, 2004). Here is his review related to the dynamics of BMT in Indonesia.

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At BMT, characterized from its founding conditions which must involve a number of

residents / community leaders. hat is, as a condition of the formation of course, already happened collectivity of people who think and

act together

his is very clearly seen in BMT, where the goal is to create changes in the economy and

also the people of the community behavior patterns

research-based Amin (2009) it appears that successful BMT is characterized among others

by the amount of support from community leaders and even from local companies. hat is, there are still growing collectivity together,

although not formalized as in the formal organization

One of the requirements for working capital loans in BMT is that the borrower must have

a savings account irst. his is the beginning may be surprising, because as a society tend to be consumptive, and less familiar with the

culture of saving. However, over time, there have been spontaneous among community

residents to put the savings (the pattern of productive life) rather than borrow money

BMT as the movement of Social Welfare

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that have been revealed in the beginning of this paper, which stated that the modernization and penyeragama-based capitalism and free markets, proved unsuccessful welfare of society, especially in developing countries. he following is the opinion of Muhammad (2009) Strengthening the free market economic system and the ‘privatization’ of social welfare to make community development has an important signiicance in the efort to emphasize the importance of informal self-help and involvement in supporting the strategy of addressing poverty and oppression, and in facilitating community participation and empowerment.

Social Welfare Concept Analyzing the BMT

he concept of ‘good’ in inter-human relationship is measured by standard social values (social values) and norms (norms) that underlies

the order of social life and behavior of citizens of the

community itself

he results of BMT studies (Amin, 2008) explicitly explained that they are

successfully developed BMT are those who still adhere to the standard value (Spiritual and Social Afairs) and always

heed the prevailing social norms. hat is, it is clear that BMT has encouraged

the creation of the conditions / circumstances of social welfare for the

community.

Meet their needs on their own

BMT in this case is a movement that is intended to encourage self-reliance. hrough the eforts of small business coaching, mentoring and increased

activity of public morality

United Nations (in Budhi et al, 2010:25-26) deines social welfare, as follows: “Social welfare is a state of well-being, both physically, mentally and socially, and not only the improvements of social ills certain “. Further explained that the social welfare refers to the “state of good inter-human relations, that is conducive for people to make eforts to meet their needs independently.” Here is a further analysis of the ideas developed by Budhi et al (2010:27).

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general is one of the social welfare movement, getting stronger if you see the development of BMT in Indonesia, as reported by Reuters following (republika.co.id downloaded July 20, 2012) “he growth of Islamic microinance institutions (LKMS) in Indonesia showed a trend increasingly signiicant progress. With the main objective of the micro and super micro which is generally located in rural areas, LKMS transformed into a small people mover a tough economy. Currently, there are about three million customers who obtained inancial assistant from micro LKMS or BMT.

Based on advance information, it is increasingly clear that BMT has potential as a driver of social change and social well-being of future propulsion.

References

Amin Aziz. 2008. E-Book Tata Cara Pendirian BMT PKES (Pusat Komunikasi Ekonomi Syariah) Publishing. Jakarta.

David Borstein. 2006. Mengubah Dunia: Kewirausahaan Sosial dan Kekuatan Gagasan Baru. Insist Press dan Yayasa Nurani Dunia.

Hery Wibowo. 2012. hird Sector in Indonesia: Urgencies and Chalenges. Presented in International Consortium of Social Development Asia Paciic. Yogyakarta.

Irawan Deni Sudrajat & Slamet Usman Ismanto. 2000. Modul Manajemen LKMS; Pendirian, Konsep Syari’ah & Operasional Pengelolaan) Pusat Inkubasi Bisnis Usaha Kecil.

John Elkington & Pamela Hartigan. 2009. he Power of Unreasonable People. Penerbit Dian Rakyat (Warta ekonomi). Cetakan Pertama.

Lincolin Arsyad. 2008. Lembaga Keuangan Mikro; Institusi, Kinerja dan Sustanabilitas. Penerbit Andi Yogyakarta.

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---, 1998, Transformasi Pendekatan dan Strategi Membangun Masyarakat Melayu, dalam Pengajian Sastera dan Sosio Budaya Melayu Memasuki Alaf Baru, Akademi Pengajian Melayu Universiti Malaya, Kuala Lumpur.

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---, 2000, Faktor-faktor Strategik dalam Pembangunan Masyarakat, dalam Pembangunan dan Dinamika Masyarakat Malaysia, Mohd Razali Agus - Fashbir Noorsidin, Kuala Lumpur, Utusan Publications & Distributores SDN BHD.

---, 2003, Penilaian Dampak Pembangunan Ke Arah Kesejahteraan Masyarakat, dalam PENILAIAN DAMPAK SOSIAL, Mohd Razali Agus - Yahaya Ibrahim, Kuala Lumpur, Utusan Publications & Distributores SDN BHD.

---, 2003, Pembangunan Sosial: Tantangan di Indonesia, dalam Isu Kesejahteraan Sosial, di Tengah Ketidakpastian Indonesia. CEPLAS (Centre for Political and Local Autonomy Studies) Fakultas llmu Sosial dan llmu Politik Universitas Pasundan Bandung.

---, 2011, Kedaulatan Wilayah Perbatasan Negara: Persfektif Kesejahteraan Sosial, Puslitbang KPK LPPM Unpad, Bandung.

Muhammad. 2009. Lembaga Keuangan Mikro Syariah: Pergulatan Melawan Kemiskinan & Penetrasi Ekonomi Global. Graha Ilmu Yogyakarta.

Marguerie S. Robinson. 2002. he Micro Finance Revolution. Volume two: Lesson from Indonesia. he World Bank- Open Society Institute. Page xxii.

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in Increasing Social Welfare In Indonesia. Islamic University of Indonesia. Diunduh dari Depag.go.id.

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iles/hornton_ARS_1999.pdf, sociology of entrepreneurship http://

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