DEVELOPMENT OF SYARI'AH MICROFINANCE INSTITUTIONS DURING THE PANDEMIC: ANALYSIS OF THE PERFORMANCE OF BAITUL MAL WA TAMWIL (BMT) IN INDONESIA

Abstract

The emergence of the COVID-19 pandemic has had a significant impact on various sectors, such as the economy, society, and politics. This pandemic has spread to major countries and almost all countries globally, including Indonesia, especially in the economic, banking, and Islamic financial sectors. The Syari'ah Microfinance Institution (BMT), which is currently in a good trend, also experienced a pandemic shock. In this study, the authors used a descriptive qualitative approach. This study seeks to understand the various concepts found in the research process, using content analysis techniques and library research. The study results concluded that the development of BMT in pandemic covid-19 had experienced a drastic decline. As a Syari'ah Microfinance Institution that serves business units that rely on daily transactions, with the tendency for people to work from home, people are not interested in doing activities outside the home so that it will have a direct impact on their liquidity. As a financial institution that has played a role in the development of micro small and Medium Enterprises (UMKM) in Indonesia, the decline in the performance of UMKM will also affect the development and performance of LKMS (BMT).