Analysis of the Role of Baitul Maal Wat Tamwil (BMT) in Poverty Alleviation in Urban Areas

Poverty is a major problem that continues to hamper economic development, especially in urban areas. One of the institutions that play an important role in alleviating poverty in the region is Baitul Maal wat Tamwil (BMT). BMT combines social and economic functions in community empowerment by providing easy and sharia-based financial access. However, the effective role of BMT in reducing urban poverty needs to be further analyzed. This study aims to analyze the role of BMT in poverty alleviation in urban areas as well as to evaluate its impact on community welfare. This research uses a qualitative method with a case study approach on several BMTs operating in urban areas. Data was collected through in-depth interviews with BMT managers and beneficiaries, as well as observations of BMT activities in providing loans and financial training. The results show that BMTs have a significant role in assisting the urban poor through the provision of affordable financial services, as well as training programs that improve economic skills. Nonetheless, challenges remain with regard to program sustainability and access expansion.