In Indonesia, Islamic microfinance established through the presence of Baitul Mal wa Tamwil (BMT), the most popular type of Islamic microfinance institutions. BMT providing financing for the micro-entrepreneurs, as their potential clients, that operates their activities mostly at the traditional markets. The purpose of this study is to measure the impact of BMT for poverty alleviation in Bandung, the capital city of West Java as the biggest population province in Indonesia. This study is looking at income variables of micro entrepreneur’s household before and after they received financing from BMT, as well as the income of their micro-businesses. The primary data obtained through in-depth questionnaires in Bandung, Indonesia