MICRO CONTRIBUTION OF BAYT AL-MAAL WA AL-TAMWIL (BMT) TOWAED YOGYAKARTA'S CITIZEN

This paper aimed to identify whether selected BMT’s Product (Pr), empathy of Islamic microfinance institution to their members (G), profit sharing determination (Ps) influencing their member’s welfare (Y). This welfare is the increment of a combination of member’s income (y), consumption (C) and investment (I) after becoming BMT’s partner. By using Slovin formula and Multiple Linear Regression method, this research will evaluate 95 BMT’s member, those are in the second (or above) financing periods. The finding indicates the improvement in welfare positively relationship with the product offered, the empathy of BMTs to their members and profit sharing ratio they agreed. And these all will promote the sustainability contribution of BMT for small entrepreneur in the long run. Therefore, giving consistently attention to the members and commit on the tract as a BMT – not act like a bank – will solely solve micro and small enterprises problems as a grassroots economic level, who are unable to get an easy procedure to connect to the Islamic bank.
Keywords: Bayt Al-Maal Wa Al-Tamwil (BMT), empathy, profit sharing, Yogyakarta citizen, Slovin formula, Multiple Linear Regression.