REGULATORY MODEL OF BAITUL MAAL WAT TAMWIL (BMT) IN THE INDONESIAN LEGAL SYSTEM

Abstract This research is motivated by the condition that the existence of Baitul Maal wat Tamwil gives rise to normative conflicts and normative vacuums due to the existence of regulations regarding Baitul Maal wat Tamwil which are not yet focused on a single regulation, such as the Law on Banking..This study aims to answer questions regarding the nature of Baitul Maal wat Tamwil in the Indonesian Legal System, the regulation and implementation of BMT in the Indonesian Legal System, and the model for regulating BMT after the Indonesian Legal System.This research is a normative legal research using the method of Philosophical, Historical, Legislative, Conceptual, and Comparative Approach. The legal materials consist of Primary, secondary, and tertiary laws collected using library research. The results of the study indicate that the essence of BMT in the Indonesian legal system is an integrated independent business center as one of the economic system models, which is based on sharia principles in accordance with Islamic teachings in economic activities. In achieving its objectives, a new legal entity is needed, namely the BMT itself so that the unique BMT operations can be carried out.The recommendation is that BMTs must have their own regulations for operating as financial institutions, whether in the form of associations or associations. The government, both the House of Representatives and the President, should formulate specific legal norms governing the management of BMTs as Islamic microfinance institutions, as established legal entities require a legal basis for their legal regulation.