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This study aims to (1) to find out how the role of Islamic microfinance institutions on micro businesses in Jambi city. (2) to find out how the development of Islamic microfinance institutions in Jambi city. (3) to find out what efforts are made by Islamic microfinance institutions (BMT) to increase their role towards micro enterprises in Jambi city. The problems discussed in this thesis are (1) how the role of Islamic microfinance institutions on micro businesses in Jambi city. (2) what influences the role of Islamic microfinance institutions (BMT) on micro businesses. (3) what efforts are made by Islamic microfinance institutions (BMT) to increase their role towards micro business ventures in Jambi city. The research method used is descriptive qualitative. The descriptive method of analysis is obtained through data sourced from observation, interviews, and documentation as well as other sources that support field research by finding data sources directly from the field, namely from the BMT through data collection and interviews with the parties concerned. The results of this study are the Financing mechanism at BMTs in Jambi city, namely BMT Al-Ishlah, BMT KOSSUMA, and BMT. Muslimah Masyitoh tends to be the same, the difference lies only in the tax year of the vehicle financing ceiling, and the length of installments. Financing includes several contracts, namely murabahah, ijarah, ar-Rahn, mudharabah, musyarakah and qordhul hasan. Analysis before channeling financing at BMT for prospective financing members includes: Character, Capital, Capacity, Condition, and Coleterol. The importance of Islamic microfinance by BMTs in Jambi city in empowering MSMEs is evidenced by the main target of BMT financing is small business actors who are not reached by banks. Simple procedures and applied financing are needed by Jambi city MSMEs in developing their businesses. The constraints of the Jambi city BMT cooperative in carrying out its business, namely financing in the context of empowering MSEs, include internal constraints and external constraints.

The increasing needs of life encourage people to seek funds from various sources, including those that are not in accordance with sharia principles such as interest and loan shark practices. In facing this challenge, Baitul Maal wat Tamwil (BMT) emerged as a sharia-based microfinance alternative that rejects the element of usury and emphasizes justice and blessings. The purpose of this study is to examine the application of sharia principles in financing activities at BMT, as well as analyze the challenges and opportunities for development, especially in Padangsidimpuan City. The method used in this research is a descriptive qualitative approach by conducting literature studies and case studies at BMT Insani. The findings of the research show that BMT has implemented sharia contracts such as murabahah and mudharabah in its financing activities. However, there are still some obstacles such as competition from conventional financial institutions, limited human resources, and low financial literacy among the community. Nevertheless, BMTs have significant opportunities to grow through increased education, product innovation, and strengthening of institutional structures.

Baitul Maal Wat Tamwil (BMT) is a sharia-based microfinance institution that plays a role in providing financing to the community, particularly micro-entrepreneurs, to help them avoid reliance on loan sharks. This study focuses on the implementation of the murabahah contract at BMT As'adiyah Sengkang, using a descriptive qualitative approach through interviews, observations, and document analysis. The findings indicate that the murabahah contract is implemented based on the principles of Islamic justice, involving transparency in pricing and profit margins while ensuring that transactions are conducted voluntarily. The financing mechanism includes customer eligibility surveys, financial capacity analysis, and the determination of fair profit margins. This murabahah contract significantly benefits the local economy by facilitating access to interest-free financing without late payment penalties. In conclusion, the implementation of the murabahah contract at BMT As'adiyah Sengkang aligns with sharia values, supports the economic empowerment of the Muslim community, and contributes to the growth of sharia-based financial inclusion at the local level.