This paper has been published at a book Contemporary Issues: Islam and Science. Pp. 152-168 by Universiti Sains Islam Malaysia February 2018 THE ROLE OF BAITUL MAL WA TAMWIL TO ACHIEVE “SEJAHTERA” LEVEL AND BARAKAH AMONG MICROENTREPRENEURS: A STUDY IN KARAWANG, INDONESIA Irawan Febianto Faculty of Economics and Muamalat, University Science Islam Malaysia, Nilai Email: febianto@gmail.com Fuadah Johari Faculty of Economics and Muamalat, University Science Islam Malaysia, Nilai Email: fuadah@usim.edu.my ABSTRACT Building inclusive financial systems through microfinance is one of the goal for policy makers and planners across the globe, as one of many ways to alleviate poverty. In Indonesia, Islamic microfinance established through the presence of Baitul Mal wa Tamwil (BMT), the most popular type of Islamic microfinance institutions, with the potential clients are the microentrepreneurs. This research try to fill the gap in the study of microfinance role in general, as well as Islamic microfinance in particular on poverty alleviation of microentrepreneur to achieve sejahtera level, that mostly only measuring the material needs aspect and not cater the spiritual needs aspect of the recipient financing program. Furthermore, this research will give contribution on how we intrepret poverty in relation with “sejahtera” from new perspective and in accordance with barakah principles, which is besides material poor, there is also spiritual poor. The primary data obtained through in-depth questionnaires in Karawang, Indonesia. Keywords: Microentrepreneur, BMT, Sejahtera, Barakah