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“The Role of Islamic 2014

Finance in Socio-Economic
Development:
Ideals and Realities”

ASSESSING PERFORMANCE OF BMT

MMU AND UGT AT PESANTREN
SIDOGIRI USING MODIFIED
BALANCED SCORECARD
APPROACH

Purnama Putra

Academic Partners

The National University

of Malaysia
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ASSESSING PERFORMANCE OF BMT MMU AND UGT AT

PESANTREN SIDOGIRI USING MODIFIED
BALANCED SCORECARD APPROACH

Purnama Putra
Phd Student in Islamic Economic Program, Airlangga University, Surabaya, Indonesia

ABSTRACT

It has been so long for pondok pesantren to hold a role as an economic based society.
However, the question of whether pesantren has been able to reduce poverty or not, remains
unanswered. The research was aimed at finding out the performance of pesantren-based
Islamic finance by using Modified Balanced Scorecard. From the performance measurement,
the most influential indicator of the performance could be uncovered and then implemented
in some other foundations. Another aspect elaborated in this research was the operational
problems of the foundation and the solutions.
Two Islamic Micro Finances were involved. Those were BMT MMU and UGT established in
the oldest Islamic boarding school of East Java, PP Sidogiri. This research employed parallel
mixed method. The quantitative approach was done by scoring several performance
indicators of the two foundations by implementing the scoring system based on Balanced
Scorecard. The qualitative approach was done by conducting interview, survey, and
observation.
The results gained from this research showed that BMT UGT had better performance
compared to BMT MMU measured by the scoring system which was based on Balanced
Scorecard. The indicator that made the difference was financial indicator. The most
influential performance indicators from both of the foundations were economic utilization
and the performance of social legitimacy. Several efforts had been done to encounter ongoing
operational problems in both of the foundations. The efforts were related to the improvement
of human resources and inviting experts to help the foundations dealing with operational
problems.

Key Words: Islamic Micro Finance, Baitul Mal wat Tamwil (BMT), and Balanced
Scorecard.
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INTRODUCTION
It has been a common characteristic for developing countries to consider a Small and
Medium Enterprise (hereafter SME) to have a quite huge role in its economic structure,
including in Indonesia. The imrovement of roles and activities of SME have been revealing
since the economic crisis in the year of 1997. SME has shown a growing enhancement and
even has been able to support the growth of national economic system. The empowerment of
SME and cooperative in Indonesia is below the Department of Cooperatives and SME.
Therefore, the government has to perform and plan strategic steps in enhancing and
strengthening this basic economic life of most Indonesian people, especially through
providing more workfields and decreasing the gap and the evel of poverty.
The efforts of empowering SME have to be planned, systematical, and holistic both in
the level of small to medium enterprises covering the creation of business climate for opening
the opportunity of business as wide as possible and guaranteeing business assurance with
economic efficiency; developing business supporting system, for SME to improve the access
to productive human resources so that they can make use of the open opportunity and
potential resource, especially available local resources; developing entrepreneurship and
competitive excellence of SME and empowering micro-scaled enterprises for improving the
income of the society who perform economic activities in informal micro-scaled sector,
especially for those categorized as poor families. Besides that, the improvement of the quality
of a cooperative is significant for its healthy growth and to build collective efficiency
especially for small and medium enterprises.
The development of SME from the side of quantity is not yet balanced by its quality.
Some classical problems faced are the low productivity. This condition is influenced by
internal problem encountered which are: the low quality of human resources in managerial
and organizational aspects, the mastery of technology and marketing, the weakness of
entrepreneurship, the limitation of the access to capitalization and some other production
factors. The external problems encountered by SME are the high cost of transaction due to
the business climate which is not supportive and the material which is not adequate, the
difficulty in acquiring formal legality which until now remains as the basic problem for SME
in Indonesia, and consequently, the cost spent for getting legal permission is high. The
solution for this problem is by the establishment of intermediary foundation which is a micro
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financial foundation such as a cooperative. This foundation has to be more flexible in

bridging the access between the SME sides (the runners) and the capital owners.
Pesantren-based BMT puts itself as an intermediary foundation between the capital
owners and the runners of SME which will strengthen the economic cycle growing in the
society due to the fast growing of pesantren in Indonesia. The society and sharia based
economy, in this case is Baitulmal wat Tamwil performed by pesantren will be more rooted
since the culture of suburban society which is helping one another is in accordance to it. One
of the instances of micro enterprise organized in pesantren is BMT Maslahah Mursalah lil
Ummah (hereafter MMU) and Usaha Gabungan Terpadu (hereafter UGT) in Pesantren
Sidogiri has proven its existence from 1997 – 2010. The capital owned by BMT MMU was
only from Rp. 13.500.000, 00.- and now turns into Rp. 9.772.325.000,00- whereas BMT
UGT was from Rp.141.090.000,00.- and now turns into Rp.33.575.680.000,00.-. This
amazing growth of BMT UGT and MMU in pesantren Sidogiri is interesting to be analyzed
related to the factors influencing its growth and how the management board manages the
organization in achieving its vision and mission.
The research is conducted as an attempt to provide contribution in measuring cost
efficiency as one of the ways to evaluate the achievement of economic of scale and economic
of scope.

THEORETICAL FOUNDATION
Previous Research
Djazimah (2004) in her research paper entitled, “Potensi Ekonomi Pesantren (Studi
Korelasi antara Ketaatan Beragama Santri dengan Proses Kemandirian Ekonomi di Pondok
Pesantren Al-Mahalli Brajan Wonokromo, Pleret, Bantul DIY) (Pesantren Economic
Potential (A Correlational Study between the Students’ Faith and the Process of Economic
Independence in Pesantren Al-Mahalli Brajan Wonokromo, Pleret, Bantul DIY)) published in
the Journals of Religious Research, Vol XIII. The aim of the research is to find out the
correlation between the students’ faith with their economic independence in Pesantren Al-
Mahalli Brajan Wonokromo Pleret Bantul Yogyakarta. The research is correlational which
correlates one variable with the other one. The correlation is between the variable of students’
faith as independent variable and economic independence as the dependent variable. The data
analysis technique employed is quantitative approach using statistics as measurement and it is
 4

strengthened by qualitative data to support the statistical data. From the research conducted, it
is seen that there is a correlation between the students’ faith and their economic independence
and it is in accordance with the motto of the pesantren.
Indonesia Magnificence of Zakat (2011) in their research conducted the measurement
of organizational performance to zakat organizer (hereafter OPZ) by using five components
as the perspectives in viewing the performance of eight zakat organizers: Baitulmal
Muamalat, Dompet Dhuafa, PKPU, BAZIS DKI, DPU Daarut Tauhid, YBM BRI, BAMUIS
BNI, BAZMA. The five components are: (1) The performance of sharia, legality, and
foundation obedience, (2) management performance (3) financial performance (4) economy/
empowerment performance (5) social legitimacy performance. From all those performances
observed in the zakat organizers, the obedience of sharia, legality, and foundational are the
most prominent ones. Commonly the observed OPZ got 10 which is the highest, and there
were only 3 OPZ got below 10. On the other hand, social legitimacy performance got the
lowest score. Commonly the observed OPZ got 5 and there was only one OPZ which got 7.
The research carried out by Sabrina and Huda (2011) on the performance of Sharia
Bank was assessed by Balanced Scorecard. The parameters used are in the perspectives of
financial, banking activities/internal business, and learning and growing. These three
perspectives are transformed in five components which become variables of banking
performance measurement. The five components are: (1) The performance of sharia, legality,
and foundation obedience, (2) management performance (3) financial performance (4)
Banking Service Performance, and (5) Social legitimacy performance. The research involved
four Sharia Public Banks and the results are as follows:
1. The Perspective of Learning and Growing. For the performance of sharia, legality,
and foundation obedience, each got “Very Good”, and the Management Performance
got “Good”.
2. The Performance of Fund Collection (Funding) and Distribution and Service in the
perspective of Banking Service and the Application of Sharia Principles, each bank
got “Good”.
3. Financial perspective in financial report and social legitimacy performance, each got
”Good”.
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The research adopted the indicators used in the research done by Indonesia
Magnificence of Zakat (2011) on the performance of OPZ combined with the research
conducted by Sabrina and Huda (2011) on assessing the performance of sharia banking. The
research employed all parameters in balanced scorecard, which are: the perspectives of
finance, internal business, customers, learning, and growth. These four perspectives are
transformed to the five components which are the measuring variables of Micro-Sharia
Finance. The five components are: (1) The performance of sharia, legality, and foundation
obedience (2) management performance (3) financial performance (4) the performance of
economic empowerment (5) the performance of social legitimacy.

Micro-Sharia Finance
In establishing a fair and efficient financial system, then the wills of each type and
level of the society which is to invest and to do business are has to be contained. Islamic
financial system has to do it. It is in accordance with the Islamic teachings which are for the
universe, for the whole human beings (rahmatan lil alamin) and having the principle of
depending on one’s ability. Basically, both conventional and sharia banking are collided to
meeting legal and administrative conditions as the criteria of their credit provision. Therefore,
financial institutions which are not banks are needed to strengthen the financial system in
reaching groups in the society and it is not facilitated by banks (Sudarsono, 2005).
Riski (2007) explained that a Micro-Sharia Finance (hereafter Islamic Micro Finance
Institution (IMFI)) was planned to be a society-based economic institution whose concept is
focused to those who are poor and near poor. Its main agenda is the development of micro
and small finance especially through capital provision. To make the financial activities run
well, IMFI tries hard to collect the fund which is from the local society around it.
The most interesting factor to observe is the phenomenon of the establishment and the
development of IMFI which is not merely about economic condition. There is a desire to base
all of the activities at IMFI by Islamic teachings. According to Jacquest Gelians : IMFI is on
the way of damaging old myths saying that the poor are not credit worthy, they are not
trustworthy to be given some loans, they did not have enough money to save, they are bad
investors and worse entrepreneurs (Warde, 2000)
In this research, the researcher focuses more on IMFI which in this case is BMT
where most of IMFI like BMT were born and grown in Islamic society such as worshipers of
a mosque, members of Islamic studies, pesantren (Islamic boarding schools), Islamic
 6

organizations, etc. Some were born from the convention of a forum when they were talking
about sharia financial problems, Islamic economy, or the empowerment of the society’s
economy. Some were born from somebody’s idea which was an intention of helping others,
especially those belonging to the same faith. Shortly, there is always a relation between BMT
with Islam or with the care of improving the fate of low economic society (Sila, 2009).
The research result of Pinbuk (1998) shows that financial foundation nowadays has
powers such as: a) independent and rooted to the society, b). The organizational form is
simple, c) the system and its financial procedure is easy, d) having the access of servicing
micro entrepreneur. However it has some weaknesses. Those are: a) small scaled business, b)
limited capital, c) low quality of human resources, d) the system and its procedure are not
standardized yet. Therefore, to develop the foundation, several attempts need to be done. The
attempts are: a) the provision of manajement assistance, b) the improvement of the quality of
its human resources by conducting some trainings to standardize the system and procedure, c)
cooperation and fund distribution, d) assistance in the form of business incubation
(Situmorang,2007).
Most of BMTs are willing to fund new business which is growing in its surrounding.
This kind of willingness is seldom done by banks, neither by conventional nor sharia banks.
The banks are usually willing to fund sustainable business. What it means by sustainability
here is not related to the amount of the loan, but to the development of the related business. A
new or developing business is usually marked by its financial report which is still
unwellorganized. BMTs are usually brave enough to fund business which is not sustainable
yet because the projection does not depend on the past data. BMT organizers are well trained
to assess the business by using the method of silaturahim (having good communication and
relationship among one another). One of the keys is the good relationship between the
organizers and the members/customers through visitation both visiting their family or visiting
the real sectors of the customers. Though personal closeness is maintained, rational
assessment is still done for sure. BMT organizers rationally have learned and applied the
techniques commonly recognized in financial system (Aziz,2004 and Madjid,2007).
Contemporarly, BMT, according to its function as a Baitul Maal, is a foundation
oriented in social religious sectors and its main function is to collect and distribute the
society’s fund in the forms of zakat, infaq, shadaqah (hereafter ZIS) based on the rules
mentioned in Al-quran and As-Sunnah. On the other hand, Baitut Tamwil is a financial
 7

foundation which activity is collecting the society’s fund in the form of saving and deposite
and distributing it back to the society in the form of finance based on the principles of sharia
through common mechanisms in the world of banking. Therefore, BMT is a financial
foundation which factually has to have two businesses which are ZIS organizing and sharia
banking. If one of the businesses is not ran, thus it cannot be called as BMT yet only Baitul
Maal or Baitut Tamwil. Both of them are a system in a BMT and work synergically and
inseparably (Ilmi,2002).
According to its name and meaning, BMT can function as financial intermediary by
collecting the fund from those who have surplus fund through the saving and deposite and
distributing it bacj to those who have deficit fund through various business sectors both micro
and medium scaled enterprises.
The Assessment of Performance
Before discussing the assessment of performance, the writer performs some
definitions of performance first. According to Srimindarti (2004) performance is a general
term used for a part or a whole activity of an organization in a period by referring to a
number of standards such as costs in the past or projected with the base of management
efficacy, responsibility or accountability.
Performance is a planning process of a led organization and an attempt of controlling
the members of a working organization. It is also the use of all ability of human resources as
the members in an organization so that they can create the efficacy and efficiency for the
members themselves to achieve a common goal that has been formulated and to get an
optimal result (Dharma,2005).
Balanced Scorecard
Balanced scorecard was first published in an article written by Robert S. Kaplan and
David P. Norton at Harvard Business Review in 1992. Balanced Scorecard (hereafter BSC)
was developed as a system for measuring performance that enables the executives to view
some companies from various perspectives simultaneously. BSC is a management system
that can motivate any kinds of inventions in the areas such as product, customer process, and
product development (Yuwono, 2002).
Balanced Scorecard is collection of performance which are integrated and derivated
from a company’s strategy supporting the whole strategies of the company. Balanced
Scorecard provides a way to communicate the strategy of a company and its managers.
 8

Balanced Scorecard also shows how a company makes its financial achievement perfect
(Tunggal, 2009).
Mulyadi (2005) states that Balanced Scorecard contains two words: balanced and
scorecard. Scorecard means a card containing scores. This card is used to plan the scor that
will be achieved in the future whereas balanced means measuring somebody’s performance
from two perspectives: financially and non financially; in a short and a long terms; internally
and externally.

RESEARCH METHOD
In this research, the design employed is a study case using parallel mixed method. By
using the method, the writer expects that he can find the research result accurately, not only
in the form of numeral which is categorizing a certain finance is good or bad but a more
crucial result which is the solution for the development of pesantren-based BMT.
The strategy done to support data collection is by doing observation and indepth
interview to get adequate explanation followed by quantitative method which is survey with a
number of samples to gain a general result in a population.

The Research Objects and Location

The objects of this research were pesantren based Micro Sharia Financial Foundations
which were BMT UGT (Usaha Gabungan Terpadu (United Enterprises)) and MMU
(Maslahah Mursalah lil Ummah). Both were located at Sidogiri Boarding Schools, Pasuruan,
East Java. The research was conducted during April – May 2012 by discussing with the
organizers, managers, and customers of the research objects.

The Data and Data Resources

The research employed two kinds of data i.e. primary and secondary data. The
secondary data was gained from literature, publication aimed at getting basic theories and
also as the basic for analyzing the data related to the performance of pesantren based IMFI.
The research also required data in the form of reports, Operational Standard of Procedure
(OSP) from BMT MMU and UGT as the research objects.
The collection of primary data was done by doing observation, interview, and survey.
Observation was carried out to see the objective condition at the real field whereas interview
was done to get a deeper picture of the objects. Survey can also be done to provide a picture
 9

of something. This survey is called as descriptive survey. Descriptive survey is related to the
need of collecting certain data such as interview, questionnaires, and observation.
In this research, the researcher was the data collector so that he knows the real
condition. To test the validity of the data, there are several attempts done, they were as
follows: First, the data was triangulated by analyzing the evidence and the result was then
used to build justification of the theme coherently. Second, applying member checking to
find out the accuracy of the result and did the follow-up interview with the participants to test
its accuracy and to make a good relationship with the information resource. Third, discussing
a lot with the experts, practition and other researchers (peer examination), especially with
those putting attention to micro sharia financial foundation.

Population and Sample

The stakeholders of BMT MMU and UGT became the group of the population used
for the research whereas the samples used for this research on performance of BMT were:
the human resources who were the organizers, managers, the Board of Sharia Watch. The
samples to measure the performance of economic empowerment with the indicator of
customer satisfactory were 30 customers of BMT MMU and 20 customers of BMT UGT.

The Research Indicators

To answer the first and the second research questions, the researcher used Balanced
Scorecard (BSC). With the method of BSC, the performance of pesantren-based IMFI were
seen from four perspectives. They were: financial, internal business process, customers,
learning and growth. Based on literature review and previous research, the four perspectives
of BSC were transformed into: (a) The performance of sharia, legality, and foundational
obedience, (b) the performance of management, (c) the financial performance, (d) the
performance of economic empowerment, and (e) the performance of social legitimacy.
The technique of data processing and analyzing generally used descriptive statistics
and contigency table is shown in percentage, numbers, columns, rows, and total. The
performance measurement was done by using measuring scales in the form of a table.
On the following table 3.1, the researcher resumed the persectives used in balanced
scorecard which are employed in the research.
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Table 3.1 Performance assessment based on Balanced Scorecard approach

Perspectives Criteria Contributors

Growth and Learning The obidience of sharia, IMZ (2011), Sabrina and
legality, and foundation
Management
Internal business Economic Empowerment
Finance Finance
Social Legitimacy
Customers Costumer Satisfactory
Huda (2011)
IMZ (2011), Sabrina and
Huda (2011)
IMZ (2011), Sabrina and
Huda (2011)
IMZ (2011), Sabrina and
Huda (2011), Kaplan and
Norton (1996), Cooperative
Ministry and UKM (2012) ,
Ilmi (2002)
IMZ (2011), Sabrina and
Huda (2011), Ilmi (2002)
Kaplan and Norton (1996),
Sudarsono (2002), Amalia
(2009)

The five components are counted to achieve fair assessment. The score given to each
aspect becomes important and it gets along with each aspect’s role to the performace of
IMFI/ BMT which are the objects of the research.
The highest score which was 30% was the aspect of management since this aspect is
the main substance of good management application indicating the availability of procedural
and operational standards, strategic plan, educational level of the human resources, the
assessment of managerial achievement, regular training programs for improving the trust of
the society which will affect the improvement of IMFI/BMT which are in accordance with
sharia.
Score of 20% on the aspect of assessing the obedience performance of sharia,
legality, and foundation. This performance aspect has the main role in sharia finance
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legitimacy. On the other hand, the aspect of financial report in Balance Scorecard applied in
IMFI/ BMT is not the main thing to support transparancy and keeping the trust of the society.
That is why this aspect gets the second priority.
Score of 15% was each given to the aspects of empowerment which was giving the
service to the customers, customers satisfactory, and social legitimacy. The aspect of service
is the optimal performance in giving sharia service to the customers which is also one of the
roles of BMT/IMFI. The aspect of social legitimacy shows that BMT/IMFI is not only profit
based (the organization of tamwil) but also the baitul mal as its social function.
Table 3.2 The Scoring of Optimal Performance Assessment
Percentage
No. Scoring Components
(%)
The Obidience Performance of Sharia,
1 20%
Legality, and Foundation
2 The Performance of Finance 20%
3 The Performance of Management 30%
The Performance of Economic
4 15%
Empowerment
5 The Performance of Social Legitimacy 15%
Total 100%

The total score of assessment was gained by adding all of the scores from each
indicator. The score per indicator is the sum of each detail of the indicator. The score of the
details was madde in percentage and multiplied by the score per indicator and formulated as
follows:
The formula of the score of indicator details =
(3.1)

Percentage = % Indicator x % Indicator detail Indicator……………..

(3.2)
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Nominal Formula
Nominal = Total of score x 10 ………………………… (3.3)
% Indicator

The nominal is given in the form of numbers (1 – 10) and alphabet, where the
performance score of IMFI/ BMT per indicator dand the total score of performances are
gained by multiplying the score per indicator and the the total performance score with the
maximum score of 10. It can be seen from the following Table 3.3 and Table 3.4 as follows:

Table 3.3 the rating of each number

The Maximum and Score The Maximum Score The Maximum and Score
Minimum scores and Minimum Minimum scores of
of each aspect ( the scores of each each aspect ( the
scale of 1-10) aspect ( the scale scale of 1-10)
of 1-10)
9,50 AAA+ 6,50 A+ 3,50 BB+
9,00 AAA 6,00 A 3,00 BB
8,50 AAA- 5,50 A- 2,50 BB-
8,00 AA+ 5,00 BBB+ 2,00 CCC+
7,50 AA 4,50 BBB 1,50 CCC
7,00 AA- 4,00 BBB- 1,00 CCC-

Table 3.4 The Predicates of Composed Score Comparing the Prime Performance
of IMFI / Baitul Maal wat Tamwil

Composed Score Composed Predicate

Very Good 10 ≤ Composed Score ≤ 8,00
Good 8,00 ≤ Composed Score ≤ 6,00
Fair 6,00 ≤ Composed Score ≤ 5,00
Poor 5,00 ≤ Composed Score ≤ 3,00
Very Poor 3,00 ≤ Composed Score ≤ 1,00
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RESULT AND DISCUSSION

The Performance of BMT MMU and UGT
To assess the performance of BMT MMU and UGT, the researcher used the approach of
balanced scorecard which were interpretated in 5 main components. They are ; (1) The
performance of sharia, legality, and foundational obedience, (2) management performance,
(3) financial performance, (4) economic empowerment performance, and (5) social
legitimacy performance. Based on the collected questionnaires from the respondents, the
researcher found the result of measurement that were used for analyzing the performance of
BMT MMU and UGT. The data taken from observation and indepth interview were used as
the tools to analyze the strategies and policy decided by BMT MMU and UGT Sidogiri.
The performance assessment of BMT MMU and UGT which was pesantren based had
much similarity which were the performance of sharia, legality, and foundational obedience,
and management performance. The most significant difference was found in financial
peformance by the varios financial ratio. In social legitimacy, there was difference but not
significant between BMT MMU and UGT. Table 4.1 explains as follows:

Table 4.1 Performance Assessment of BMT MMU and UGT

Detail Score Percentages Value
NO Indicators Weight
Indicators UGT MMU UGT MMU UGT MMU
The
performance
of sharia,
1
legality, and
foundation
obedience
Sharia
2 2
Boards 30% 0.060 0.0240 0.0240
Vission and
4 4
Mission 40% 0.080 0.0640 0.0640
Structure of
5 5
Organizations 30% 0.060 0.0600 0.0600

Sub Total 100% 0.200 11 11 0.1480 0.1480 7.4 7.4

The
performance
2
of
Management
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Operating
Standard 30% 0.090 5 5 0.090 0.090
Procedure
Business Plan 30% 0.090 5 5 0.090 0.090
Evaluation of
Employee's 5 5
Achievement 20% 0.060 0.060 0.060
Training
5 5
Program 10% 0.030 0.030 0.030
Education
Level of
10% 0.030 3 3 0.018 0.018
Human
Resources

Sub Total 100% 0.300 23 23 0.288 0.288 9.6 9.6

The Financial
3
Performance
Financial
5 5
Report 40% 0.080 0.080 0.080
Solvability 20% 0.040 5 3 0.04 0.024
Rentability
ROA 10% 0.020 5 5 0.020 0.020
Operational
Expenditure
to
5 5
Operational
Renenue
Ratio 10% 0.020 0.020 0.020
Liquidity
Cash Ratio 10% 0.020 5 2 0.020 0.008
FDR 10% 0.020 3 5 0.012 0.020

Sub Total 100% 0.200 28 25 0.192 0.172 9.6 8.6

The
Performance
4
of Economic
Empowerment
Sharia Based
40% 0.06 5 5 0.06 0.06
Financing
Customer
Measured by special measurement
Satisfaction
Islamic
Micro
20% 0.03 5 5 0.03 0.03
Finance
Institition
 15

(IMFI)
Attribute

The relation
between
20% 0.03 5 5 0.03 0.03
IMFI and
Customers
The Image of
20% 0.03 5 5 0.03 0.03
IMFI

Sub Total 100% 0.15 20 20 0.15 0.15 10 10

The
Performance
5
of social
legitimacy 100% 0.15 5 5 0.15 0.15
Sub Total 100% 0.15 5 5 0.15 0.15 10 10
Total Score 47 46

Based on the previous table of 4.1, it can be concluded that the performance of sharia,
legality, and foundational obedience of BMT MMU and UGT both had the total score of 8,6.
Therefore, it had the rating of AAA which means “Very Good.” The same rating yang was
shown by management indicator. Both of them got 9,6.
For the indicator of finance, the sub total of the score of BMT MMU and UGT had
difference but not significant and both were still included in the category of AAA. The thing
differentiated the sub total achievement was the ratio of solvability and liquidity. The main
cause of the difference on the solvability ratio was the ability of the capital owned by the
foundation to cover the activa containing a risk where BMT MMU has CAR ratio that was
included in the category of “fair”. The Solvability Ratio is usually used by the user to view
the financial safety that will be invested to a business entity. Therefore, BMT MMU should
improve its CAR ratio.
The difference on liquidity ratio level found in BMT MMU and UGTwas the cash ratio
condition of BMT MMU was in the category of “poor” which means that the cash ratio of
BMT MMU lacked of available fund in meeting some loans that needed immediate payment.
There was difference in the level of Financing to Debt Ratio (FDR) at BMT MMU and
UGT, where the FDR of BMT MMU was in the category of “fair” while the level of FDR
shows funding distribution to the customers. With the category of “fair”, BMT UGT had not
 16

maximized the financial allocation which is in accordance with the funding accepted so that
the idle capacity could be minimized. The idle capacity should be minimized so that the
operational cost would not be too much and the profit could be improved.
The rentability ratio at BMT MMU and UGT in the same category shows that both are
“very good”. The rentability is in accordance with the Islamic teaching written in Q.S Al-
Furqan 67 :

           

67. Those who, when they spend, are not extravagant and not niggardly, but hold a just
(balance) between those (extremes).

And the teaching of not being extravagant is stated in Q.S Al Isra ayah 26-27

           

         

26. And render to the kindred their due rights, as (also) to those in want and to the wayfarer:
But squander not (your wealth) in the manner of a spendthrift.
27. Verily spendthrifts are brother of the evil ones; and the evil one is to his Lord (himself)
ungrateful.

The indicator of economic empowerment which is customers’ participation was carried

out by BMT MMU with the program of lending and funding to the members based on the
transactions allowed by Islamic sharia. In this indicator, the researcher did a survey for
finding out customers’ satisfactory to 30 customers of BMT MMU and 20 customers of BMT
UGT. To find out the attribute and the service of BMT, the relationship between BMT and its
 17

customers and the image of BMT resulted in the average score of > 4 to 5 which then
conversed to 5 so that it is included to the category of “very satisfying”.
Based on the questionnaires done to measure the indicator of social legitimacy, BMT
MMU and UGT were united in the network of Sidogiri resulted BMT MMU and UGT to be
categorized as “very good” by earning social fund of Rp. 878.886.324,76,- by BMT MMU
and Rp. 2.441.532.636,- by BMT UGT. The zakah fund was Rp. 1.322.130.130,-
Based on Table 4.1, the performance percentage of BMT UGT can be seen
comprehensivelly in Picture 4.1as follows:

The Performance of BMT UGT

The performance
Kinerja kepatuhanofsyariah,
sharia,
legality, and foundation
legalitas
obediencedan kelembagaan
10 7.4
21% 16% Kinerja Manajemen
The Performance of
9.6 Management
10 21% Kinerja Keuangan
The Financial Performance
21%
9.6
21% Kinerja Pendayagunaan
The Economic
Ekonomi
empowerment Performance
Kinerja Legitimasi Sosial
The Social Legitimacy
Performance

Picture 4.1 The percentage of performance indicators at BMT UGT

Generally, the performance achievement at BMT UGT was 9,32 which is included in
the rating of AAA meaning “Very Good” as shown by the following table:

Table 4.2 The Performance Measurement of BMT UGT Sidogiri

Score
No Assessment Components
(%) Numbers Alphabeths
The Performance of Sharia, Legality, and
1 Foundational Obedience 14,8 7,4 AAA-
2 Management Performance 28,8 9,6 AAA+
3 Financial Performance 19,2 9,6 AAA+
4 The Performance of Economic Empowerment 15 10 AAA+
 18

5 The Performance of Social Legitimacy 15 10 AAA+

Overall 92,8 9,32 AAA

The result of performance measurement of BMT Maslahah Mursalah lil Ummah

(MMU) Sidogiri based on 5 (five) measurement components got the score of 9,12 which
included in the rating of AAA meaning that it is in the category of “Very Good”. It can be
seen in the following table:

Table 4.3 The Performance Measurement of BMT MMU Sidogiri

Score
No Assessment Components
(%) Numbers Alphabets
The Performance of Sharia, Legality, and
1 Foundational Obedience 14,8 7,4 AAA-
2 Management Performance 28,8 9,6 AAA+
3 Financial Performance 17,2 8,6 AAA+
4 The Performance of Economic Empowerment 15 10 AAA+
5 The Performance of Social Legitimacy 15 10 AAA+
Overall 90,8 9,12 AAA

Based on Table 4.3 which shows the performance score of BMT MMU, it can be
seen that each performance indicator of BMT MMU was as follows:
 19

The Performance of BMT MMU

The performance of sharia,
10 7.4 legality, and foundation
obedience
22% 16%
9.6The Performance of
10 21%Management
22% The Financial Performance
8.6
19%
The Economic
empowerment Performance

The Social Legitimacy

Performance

Picture 4.2 The Performance of BMT MMU

The Problems and Strategies

Based on the observation, interview, and survey done to BMT MMU and UGT related
to the performance of pesantren based Islamic Micro Finance Institution, there were
some problems and strategies as solutive actions for the problems.
The Problems
a. Sharia, Legality, and Foundational Obedience
The problems faced by BMT MMU and UGT related to the development of
these aspects of BMT are as follows:
1. The organizing at branch offices.
2. The rules of the local government that sometimes are not in accordance with
the national government.
b. Management
The problems faced by BMT MMU and UGT related to management was the
way of managing the human resources, managerial procedures, and internal
control.
c. Finance
The main problems in the area of finance faced by BMT MMU and UGT were
as follows :
1. Liquidity management
 20

2. Financial Efficacy and Efficiency Maintenance

3. The Problems of Non Performing Financing (NPF) which is high
4. Capital.

d. Economic Empowerment
Several problems related to the economic empowerment were closely related
to the service of BMT MMU and UGT in providing the service to theor
customers. They were as follows:
1. The implementation of sharia based economy in distributing and collecting the
fund
2. The practice of ribawi economy which has been rooted
3. The inadequate infrastructure
4. The debitors information system
5. The customers who found it difficult to do the payment at the office since they
owned small enterprises.
e. The Performance of Social Legitimacy
In distributing its social fund and other social programs, BMT MMU and UGT
did not have any problems. It was because this program had been represented by
LAZISWA (Lembaga Zakat Infak Shadakah dan Wakaf / The Foundation of
Zakah, Infaq, Shadaqah, and Wakaf) of Sidogiri.

Strategies
a. The Sharia, Legality, and Foundational Obedience
The solution given to the banch offices related to this problem was that BMT
MMU and UGT made a policy which was maximum composition of 50 % of the
human resources were managed by Sidogiri network to ease the internal control of
the branch offices.
In relation to different policy made by the local and national government,
BMT MMU and UGT conducted soft approach which was consolidation with the
local government to ask for their support.
 21

b. Management
The problems related to the human resources and management could be
colved by: conducting some continuos trainings for all of the organisers according
to their level, doing the performance assessment routinely to all of the organizers
of, opening the major of muamalat started from the level of aliyah (the same level
as senior high school), providing scholarships to students with high achievement
for continuing their study to undergaduate level majoring in Islamic economy,
information technology and other fields supporting the operation of BMT.
There is a standardized operational procedure that manages the operation
related to managerial and processes supporting foundational dynamics. When the
development of human resources does not cover what it is needed, the solution is
to hire some experts outside of Sidogiri. Explaining to the students and the people
working in pesantren that working in BMT is not only worldly matter but also for
the hereafter and to build the pesantren.
c. Finance
In financial matter, the problem faced by BMT UGT and MMU was the
condition of funding collection acceleration in an area which was higher than its
distribution. This condition required extra work done by the officers in branch
offices (the optimalization of liquidity of one branch and another). Another
solution is to look for a consultant to direct the business plan and the steps taken
for strengthening the business.
To overcome the high NPL, BMT can explain to the customers with
emotional and religious approach to make them realize. Being ready with some
funds to cover Piutang is another solution.
For capital matter, BMT MMU and UGT had the experience of being in a
difficult financial condition. Yet, with the belief in Allah, the organizers became
so otimistics, struggled, and thankful for whatever happened.
d. Economic Empowerment
A unique thing of a pesantren based BMT is that the employee are preachers.
That is a surplus point since they can educate people about the danger of riba.
Each of the human resource at BMT MMU and UGT was trained to give an
excellent service to the customers at the beginning of an office opening (1-6
 22

months at the beginning). Wadiah sceme was made numerous so that the
customers would not be made bankrupt when BMT was RUGI. Another way is by
training and supervising the customers’ business units. For those who find it
difficult to leave the workfields, there is mobile print technique to ease the
transaction.

e. Social Legitimacy
The problems arise in this matter can be overcome by the establishment of
some foundations taking care of social programs so that each component of BMT
can focus to one’s job description.

SUMMARY AND SUGGESTION

Summary
Based on the data process and analysis result, the performance of both IMFI/BMT at
Pondok Pesantren Sidogiri could be inferred as follows :
(1) The performance of BMT UGT was better than the performance of BMT MMU
especially from the indicator of financial performance. It was proven by the total
number achieved by BMT UGT which was higher than that of BMT MMU.
(2) Based on the measurement conducted by using Balanced Scorecard, it was found that the
most influential indicators for both BMT UGT and MMU were economic empowerment
and the performance of social legitimacy. It was proven from the response of the
customers saying that they felt satisfied with the service of both of the economic
foundations.
(3) To improve the performance, both of the BMTs did several attempts such as improving
the quality of the human resources by giving an opportunity to deepen the knowledge of
muamalah syariah in the level of higher education.
Suggestion
The followings are some suggestions proposed by the researcher for other BMT
organizers and also for the organizers of BMT UGT and MMU:
1. The improvement of human resources to be competent at BMT MMU and UGT so that
the performance of BMT can also be improved.
 23

2. The liquidity process has to regard the distribution factor, so that the fund distribution
can be more effective and efficient. By so doing, the profit gained will be higher and
the result can be used for preaching (dakwah) to the people in the surrounding.
3. This research has not elaborated the aspect of customers’ satisfactory because of the
limited time and human resources. Therefore, another research focusing on customers’
satisfactory needs to be carried out.
***
 24

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