IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Accounting and Reporting Challenges of Islamic Saving and Loan Cooperatives (BMT) in Indonesia

  • Ersa Tri Wahyuni

    ()

    (Accounting Department, Faculty of Economics, Padjadjaran University)

Registered author(s):

    The rapid development of BMT in Indonesia is not followed by the development of reporting regulations and accounting standards. The precise definite legal status of BMT is somehow in doubt and here is no accounting standard specially made for BMT. The role of BMT in microfinance institution is not small. The number of BMT has risen from 300 at the end of 1995, to 1501 at the end of 1997, and to 2470 BMT in 1998 (Timberg, 1999). While the definite number of BMT is hard to determine, currently there are more than 3000 BMTs all over Indonesia, with consolidated asset of more than IDR. 1 trillion, employing more than 30,000 workers, more than 40% of which are women. BMT serves 2 millions depositors and distribute micro credit to more than 1.5 millions micro entrepreneurs (Azis, 2000). This paper discusses the challenges faced by BMT managers for their accounting activities and in generating financial reports. This paper also discusses’ the development of BMT in Indonesia and the development of accounting standards applicable to BMT. Surveys and interviews with many BMT managers and NGOs staff were conducted to gain information related to research objectives. There are four major challenges that BMT’s managers and directors face in their accounting and reporting process: Inadequate knowledge of Islamic banking law, Unavailability of Accounting standards for BMT, Human resources challenges and IT and infrastructure challenges. This paper also proposes some recommendations as a result of the research findings.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL: http://www.equitablepolicy.org/wopacs/201102.pdf
    Our checks indicate that this address may not be valid because: 500 Can't connect to www.equitablepolicy.org:80. If this is indeed the case, please notify (Hamzah Ritchi)


    File Function: First version, 2011
    Download Restriction: no

    Paper provided by Department of Accounting, Padjadjaran University in its series Working Papers in Accounting Studies (WoPAcS) with number 201102.

    as
    in new window

    Length: 17 pages
    Date of creation: May 2011
    Date of revision: May 2011
    Handle: RePEc:unp:wopacs:201102
    Contact details of provider: Postal: (62)(22) 2503271 ext. 146
    Phone: (62)(22) 2503271 ext. 146
    Fax: (62)(22) 2501977
    Web page: http://akuntansi.fe.unpad.ac.id/
    Email:


    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:unp:wopacs:201102. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hamzah Ritchi)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.