Analysis Problem of Baitul Maal Wat Tamwil (BMT) in Pekanbaru

BMT is a financial institution which is required by small entrepreneurs to finance their business operation. This institution provides financing to help small entrepreneurs whose cannot access financing from banking sector. In addition, the existence of BMT is really helping a lower income group society to avoid them from illegal money lender who may charge them with higher interest. Since its appearance in 1992, BMT has been getting positive response by all members of Indonesian society. Some members of the society take advantage of these golden opportunities through setting up BMT institutions. However, many of them failed and end up with bankruptcy. It is because they faced many problems in their operation. Therefore, this article selected BMT in Pekanbaru as a case study in order to analyze the problems faced by BMT whether these problems due to internal or external factors.