BMT as a

Social-Enterprise2

Jamil AbbasGeneral Manager – PBMT Social Ventures

Social Enterprise

A business created to solve social problem(s) in

a financially sustainable way.

Social Enterprise2

A social enterprise which also establishes or has

established another social enterprise to increase

its social impact.

Is BMT a social enterprise ?

BMT

Baitul

(House)

Tamwil

(Business)

Maal

(Social)

Baitul Maal wat TamwilThe House of Social and Business

The BMT model

Indonesia’s model of Islamic “social” microfinance

DONORSZakatInfaqShadaqahWakafQardh-al-hasanDonationCSR

MEMBERS

ISLAMIC BANKS & FINANCIAL INSTITUTIONS

INVESTORS

Commercial Financingfor MSME

Social Activities, incl. Non-Commercial Financing

The BMT model

MEMBERS

ISLAMIC BANKS & FINANCIAL INSTITUTIONS

INVESTORS

Commercial Financingfor MSME

The BMT model

DONORSZakatInfaqShadaqahWakafQardh-al-hasanDonationCSR

MEMBERS

ISLAMIC BANKS & FINANCIAL INSTITUTIONS

INVESTORS

Commercial Financingfor MSME

Social Activities, incl. Non-Commercial Financing

The BMT model

Poorest of the Poor

Grant

Micro enterprise

Commercial Loan – Microfinance

Poor

Non-commercial

•Grant

•Saving education

•Technical guidance

Poorest

of the Poor

•Non-commercial loan

•Saving education

•Technical guidance

Poor•Financial service

•Capacity Building

Micro-enterprise

The BMT model

Healthcare

Disaster Recovery

Education

Infrastructure

Developing Productive Community

Why is it important to make it clear that BMT is a social enterprise ?

• Simply the truth

• To update the social enterprise landscape in Indonesia

• For greater support from public

BMT as a

Social-Enterprise2

Why is it important to introduce the concept of

Social-enterprise2 to Islamic microfinance

institutions ?

• To bring in more sustainable solutions to the community.

• To optimally utilize local resources to solve social problems.

Summary

• BMT is clearly a social enterprise. Tamwil division alone is already a social enterprise, and, with Maal division, BMT’s social impact is soaring even more.

• There are still various social problems at the community. Social enterprise approach can solve many of those problems. BMT, through its Baitul Maal, can establish various social enterprises for the sake of the community.

• BMT, being a social enterprise which establishes other social enterprise

= Social-enterprise2.

Summary

• In establishing a social enterprise, BMT can collaborate with other organizations.

• Structure and ownership of the “BMT initiated / established” social enterprise should be designed in a such a way which is best for all stakeholders, especially the community.

We are not just helping the poor to survive but

we are trying to help them to stop being poor