MUHAMMADIYAH.OR.ID, YOGYAKARTA – Participants of the Muhammadiyah Microfinance Summit III, representing Baitut Tamwil Muhammadiyah (BTM) across Indonesia, formulated seven recommendations aimed at fostering an inclusive economic ecosystem aligned with the principles of Islam Berkemajuan (Progressive Islam).
Organized in Yogyakarta from December 12-14, the summit, themed “Building Muhammadiyah Microfinance Corporations within the Framework of Progressive Islam,” brought together BTM leaders to discuss strategies for empowering the community through microfinance.
Achmad Suud, the head of BTM, emphasized the essential role of BTM in advancing the economic interests of the community, particularly for micro, small, and medium-sized enterprises (MSMEs) that often face challenges in accessing financing from larger banks.
The seven recommendations outlined at the summit are as follows:
- Economic inequality in this country will persist unless economic policies shift away from the traditional model of favoring a select few or oligarchies and instead prioritize the interests of the marginalized majority, many of whom operate within the MSME sector.
- To create economic equality, it is important to establish a collective economic model that integrates various elements of the economic ecosystem from upstream to downstream. This concept of a “closed-loop economy” is aligned with Muhammadiyah’s third pillar, focusing on economic development.
- The establishment of one BTM for each Muhammadiyah Regency Board (PDM) becomes the foundation of Muhammadiyah’s professionally managed and technologically advanced financial ecosystem.
- To create a Muhammadiyah microfinance corporation, it is important to implement good corporate governance (GCG) and measurable performance indicators within BTM’s management framework.
- Collaboration among stakeholders, including regulators, strategic partners in Islamic finance, and Muhammadiyah’s broader network, is also deemed essential to the development of a robust Muhammadiyah microfinance corporation.
- A Treatise on Progressive Islam, a result of the 48th Congress (Muktamar) of Muhammadiyah in Surakarta, will always become the spirit and guideline for managing the BTM. The treatise will also inspire innovation and creativity in positioning BTM as a center for Muhammadiyah finance.
- Looking ahead to the 2025 National Microfinance Outlook, BTM expressed optimism about the Prabowo-Gibran leadership’s economic development, which is expected to have a multiplier effect on poverty alleviation. However, as a sharia-based microfinance institution, BTM remains cautious, prioritizing risk mitigation to ensure the sustainability and growth of Islamic microfinance.
