Design And Determine Holistic Financial Inclusion Through Baitul Maal Wa Tamwil

Holistic financial inclusion (HFI), an integration of social inclusion delivered by not-for-profit MFIs and financial inclusion delivered by for-profit MFIs, is actually not a new concept in Islamic perspective. This study aims to develop holistic financial inclusion based on Maqashid Shariah through Baitul Maal wa Tamwil (BMT), which would be able to solve the issues of double bottom-line, mission drift and triangle of microfinance, using Analytic Network Process (ANP) and survey to 120 BMTs. The ANP results show that the most important elements of HFI are funding independent 2.26% (Sustainability), consumption smoothing 2.17% (Economic Impact), simplicity 2.16% (Financing Program), micro financing 2.15% (Islamic Microfinance services) and income increase 2.14% (Economic Impact), followed by easy access 2.10% (Financing Program), mindset change 2.10% (Social Impact), empowered 2.06% (Social Impact), micro savings 2.05% (Islamic Microfinance Services) and basic needs fulfillment 2.01% (Social Program). Furthermore, the design of BMT-HFI should have social inclusion, including Social Program (basic needs fulfillment and bailout debt) and Development Program (savings program and regular meeting), as well as financial inclusion, including Financing Program (simplicity and easy access) and Islamic Microfinance Services (micro financing and micro savings) to achieve double bottom-line, including Outreach (total deposits and number of members) and Sustainability (funding independent and operational efficiency), as well as welfare impact, including Economic Impact (consumption smoothing and income increase) and Social Impact (mindset change and empowered). Survey results show that larger BMT has reached better Holistic Financial Inclusion (HFI) score. Small BMT (2.30) still serves as minimum HFI, medium BMT (2.65) and large BMT (3.06) serve as medium HFI, while very large BMT (4.01) has become medium-high HFI. All BMTs already have medium-high Financing Program by their Baitut Tamwil (BT), but they still have minimum role in Social Inclusion by their Baitul Maal (BM), except very large BMT, which has already achieved medium Social Inclusion. Meanwhile, almost all BMTs have medium-high Sustainability, while almost all BMTs have minimum Social Impact, except very large BMT, but all BMT have medium Economic Impact. Primary focus of BMT is Financing Program (of financial inclusion) and The authors would like to thank Andang Setyobudi as advisor, Nursechafia, Aziza B. Khairani, Atika R. Masrifah and Khairunnajah as research assistants, as well as Budi Suharjo and team as surveyors. 1 Head of Islamic Economics Society, Ibn Khaldun University, Bogor, Indonesia 2 Sustainability (of double bottom-line), while it gives second priority to Social Program and Development Program (of social inclusion). However, there are no problems of commercialization and mission drift. The issue of double bottom-line (Sustainability and Outreach) or triangle of microfinance (Sustainability, Outreach and welfare impact) could also be achieved simultaneously by BMT, based on priority.