La evolución de la Educación Pública en el Ecuador

As previously outlined in chapter 2, BMT has two primary functions: baitul tamwil (treasury) and baitul maal (house of wealth). These two divisions show that the BMT system seeks to realize economic and socio-religious objectives using Islamic financial principles. The baitul tamwil division essentially offers financial intermediation by channeling funds between lenders and borrowers (Ascarya, 2014, p.56). In this, it acts as a cooperative, using a Profit-Loss Sharing (PLS) mechanism that involves mutual partnership (sirka) between depositors/investors (rabb al maal), the IMFI (baitul tamwil), and borrowers (mudarib). The BMT manages funding, saving, deposit and borrowing, then subsequently invests those funds into productive economic activities, primarily to finance microenterprises and low-income households. In return, all parties share the profit that is generated from the business (if it is profitable) or the losses of the business (if it fails). Meanwhile, the baitul maal divisionfunctions to collect and distributefunds from

zakah, infaq, and shadaqah (Wulandari & Kassim, 2015, p.271).

The selected BMTs have been involved in both business (through baitul tamwil) and social missions (baitul maal). However, there are differences in the scale and types of activities performed by the four BMTs, particularly in their

baitul maal. The next section discusses the performance of BMTs in these two divisions.

4.3.2.1Baitul Tamwil 1. Savings and Deposits

BMTs employ a unique marketing strategy to raise funds from potential depositors. Unlike in a conventional banking system, wherein prospective customers take the initiative to register themselves as customers, potential BMT clients are mostly passive. Many have previously had no access to formal financial institutions and live in rural or suburban areas. As such, BMT marketing staff must proactively approach prospective members, either as individuals or groups. Normally, information about potential customers comes from clients who are already BMT members. To further attract new members and depositors, BMTs use micro-marketing techniques by involving prominent local clerics and community patrons. As the government does not guarantee customers' deposits with BMTs, the presence of such influential Muslim figures serves to boost depositors' confidence in the security of their deposits (Nazirwan, 2015, p.178).

In addition, Islamic organizations—including community mosques, foundations, pesantren, and majelis taklim28 groups—are important sources of funding for BMTs. As BMTs are IMFIs, it is relatively easy for them to establish mutual relationships and receive financial support from such religious organizations. BMTs also collect funding through arisan. Many use arisan groups as a means of empowering and developing personal closeness between members. When arisan groups operate, BMTs act as safe places for their money to be deposited (see Chapter V).

BMT places the funds it receives from its clients in savings accounts. There are two major types of savings accounts: 1) compulsory savings accounts, related to ownership and membership; and 2) voluntary savings and deposit accounts, the most popular of which are general savings and time deposit accounts. Products vary among BMTs, but their basic features are similar to Islamic banking products. The following table summarizes savings and deposit instruments in the four chosen BMTs.

Table 4.3: Description of BMT Saving and Deposit Instruments

NO Products Description

1 Term Deposit (Deposito Berjangka) : - SIMADA (Simpanan Mudharabah

Berjangka, Mudharabah term deposit). - TAJAKA (Tabungan Berjangka, Term

saving).

- INANMI (Investasi berjangka Gemi or Term investment of Gemi).

Term deposit is based on mudarabah.

The Deposit can be withdrawn within an agreed period (3, 6 or 12 months). Every term has a different ratio of return – the longer the period, the higher the rate of return.

2 General Saving (Tabungan Umum), the generic name is Tabungan Wadiah and Tabungan Mudharabah. Several products of general saving are:

- SIWARDAH (Simpanan Berhadiah

Wadiah, Wadiah Prize savins).

- TAQUR (Tabungan Qurban29, Saving for

Qurban).

- TAPEN (Tabungan Pendidikan, educational saving).

- SIHAROH (Simpanan Haji dan Umroh,

Hajj and umrah saving).

- TAWAL (Tabungan walimah, saving for wedding ceremony).

- SIWANI (Simpanan Wisata Rohani, Saving for spiritual tourism).

- SEHATI (Simpanan Eksekutif Hari Tua Islami or Saving for Islamic retirement) - TADURI (Tabungan Idul Fitri or Saving for

Eid al-Fitr)

- SIMADU (Simpanan Mudarabah Umum or Mudharabah general saving).

Withdrawals of Wadiah and Mudarabah

saving can be made any time; the initial amount and further deposits can be as low as IDR 5000; there is no monthly administration fee. By contrast, other types of saving product, especially which aims for a specific purpose can only be taken within the agreed period. The rate of return for general savers is very low, on average 5– 10 percent. Several BMT institutions offer prizes and incentives for loyal clients.

29An Arabic word which means sacrifice. The practice of Qurban is celebrated in commemoration of Prophet

Abraham's renowned act of obedience to the commandment of Allah to sacrifice his own son but which was later replaced by a ram. Qurban is performed during the Haj season in the first three days of the Eidul Adha. The animals allowed for Qurban are goat, sheep, cow, buffalo or camel. The meat from the Qurban are distributed among 3 categories of people: 1/3 for the poor and needy, 1/3 for family members and friends and 1/3 for the person doing the Qurban - and this portion can be given to non-Muslims.

- SIQAP (Simpanan Qurban, Aqiqah, dan Pernikahan or Saving for Qurban, Aqiqah

and wedding)

(Source: Brochures and leaflets of BMTs institution, 2017)

As shown in Table 4.3, aside from providing term deposits, BMTs offer fairly diverse savings products, particularly for general savings. BMTs typically offer two kinds of general savings products: the first is associated with Islamic rituals such as hajj30, umrah31, aqiqah32, and Eid al-Fitr33. For example, BIF offers TAQUR (tabungan qurban, sacrifice savings), which is intended to assist clients in preparing for the Eid al-Adha34feast. The second type of savings products is not directly related to Islamic ritual, but it can be categorized as social activities that are influenced by Islamic teachings including wedding ceremonies, recreation, retirement, and children's education.

The majority of BMTs have savings products for educational purposes. However, only BMT Al-Ikhwan has created a saving product for spiritual tourism (SIWANI) and retirement (SEHATI). According to Ibu35 (Mrs) Syaifullah, the founder of Al-Ikhwan, SIWANI is intended to enable members to experience spiritual tourism, which will improve their religious knowledge and work ethic.

Ibu Syaifullah further explains that, through the SIWANI product, clients once visited the live television program Mamah Dedeh36. Members have also partaken

30 An annual Islamic pilgrimage to Mecca, the holiest city for Muslims, and a mandatory religious duty for

Muslims that must be carried out at least once in their lifetime by all adult Muslims who are physically and financially capable of undertaking the journey, and can support their family during their absence.

31Non-mandatory lesser pilgrimage made by Muslims to Mecca, which may be performed at any time of the

year.

32 The Islamic tradition of the sacrifice of an animal on the occasion of a child's birth. It is widely performed

by Muslims and it is considered sunnah to slaughter a sheep or goat for the baby and distribute the meat to the poor.

33Alsoknown as Hari Raya. It is an important religious holiday celebrated by Muslims worldwide that marks

the end of Ramadan, the Islamic holy month of fasting (sawm).

34 The second of two Muslim holidays celebrated worldwide each year, and considered the holier of the two.

In commemoration of Eid al-Adha, an animal (goat or cow) is sacrificed.

35 Form of address for married woman or fairly mature female in formal situation and often followed by the

person’s first name. Married women are usually called by the husband's first name.

36 A famous ustazdah (women preacher) who has an Islamic recital program in Indosiar, a private TV station

in a spiritual tour to Istiqlal37 Mosque in Jakarta. Another unique savings product offered by Al-Ikhwan is SEHATI, which is intended to ensure clients—especially those who work as entrepreneurs—to have access to welfare after entering post- productive age (Interview, December 17, 2017).

BMT institutions use many abbreviations that mix Arabic, Indonesian, and/or Javanese terms and phrases for their savings products. From a marketing perspective, these acronyms, which are simple and catchy phrases, help customers remember the names of products. The acronyms usually have a particular philosophy and positive meaning. SIMADU (see Table 4.1), for instance, alludes to the word madu (honey), which is associated with sweetness and health. Such acronym usage is typical in Javanese culture, mainly in Central Java which is known for its rich symbols. Such icons are often regarded as a means of understanding life. For example, it is believed that the word Jawa (Javanese) is an acronym of jaga (keep) and wibawa (honor). All Javanese, thus, are expected to

jaga wibawa in their behavior (Tidar Heritage Foundation, 2017, p.1).