IMBT (Ijarah Muntahiya Bittamlik) Contract as a Strategy to Mitigate the Impact of the Pandemic Covid-19 on Financing of Islamic Micro Finance Institutions

The purpose of this study is to describe financing conditions in Sharia microfinance institutions and investigate the IMBT contract as a countermeasure for problematic financing. This research uses a descriptive qualitative approach to acquire data through interviews with ten managerial parties from four BMT Yaummi Maziyah in Pati Central Java Indonesia and literature related to financing issues. This study showed that BMT Yaummi Maziyah experienced a decrease in targeted profits and an increase in financing problems that led to a decrease in profits. In the BMT, pandemic provided a policy of relief and feasibility to stabilize financing. BMT also makes a strategy as a countermeasure to problematic financing in IMBT products. IMBT contract products have the same as without guarantees due to limited capital guarantees of financing customers. This form of IMBT deed financing is in the form of providing a food business cart without guarantees and initial capital. However, financing is under the current pandemic conditions to help communities and customers affected by the pandemic. This research advises BMT to promote the type of business financed by IMBT contract form to benefit from pandemic covid-19.