The Role of Bai’ul Wafa Financing to Improve Small and Medium Micro Enterprise (Analysis Study on BMT UGT Sidogiri, Branch of Genteng Banyuwangi East Java)

Abstract

BMT UGT Sidogiri Branch of Genteng Banyuwangi has already implemented a product of financing, named as Bai’ul Wafa. This financing method is able to help the need of surrounding society. Within the implementation of financing method of murabahah multi service in BMT UGT Sidogiri Branch of GentengBanyuwangi has multi contract comprises of Bai’ and rent. This multi contract is thennamed as “Bai’ul Wafaâ€. Basically, this contract is a part of murabahah financing ofmulti service. Moreover, this contract is considered as the most interesting financing product for the society. The surrounding society who might put interest to this contract is almost 90%. This research aims to examine the implementation of Bai’ul Wafa financing in order to improve the Small and Medium Micro Enterprise (UMKM) in BMT UGT Sidogiri Branch of Genteng Banyuwangi. Further, it also aims to observe the obstacles within the process of Bai’ul Wafa financing to improve the Small and Medium Micro Enterprise (UMKM) in BMT UGT Sidogiri Branch of Genteng Banyuwangi. This research exerts qualitative method and case-study approach. To collect the data, the researcher employs the technique of interview, participative observation, and documentation. From the research findings, this research sums up that the implementation of Bai’ul Wafa financing in BMT UGT Sidogiri Branch of Genteng Banyuwangi covering to the activity of planning, organizing, leading, and controlling. However, this BMT maximize on the activity of planning, organizing, actuating, and controlling. As for the analysis result on the development of Small and Medium Micro Enterprise after obtaining the financing from BMT, particularly the financing of Bai’ul Wafa has reached very great improvement, in both the organization profit and customer profit. These are the obstacles that are appeared in BMT UGT Sidogiri Branch of Genteng Banyuwangi on the management of Bai’ul Wafa financing: First, the existence of conventional bank and conventional enterprise. Second, the society’s misunderstanding on the concept of syariah. Third, the sale price in BMT UGT Sidogiri is higher than the sale price in conventional enterprise and bank