Kontribusi Pembiayaan Perbankan Syariah terhadap Pengembangan UMKM Sektor Halal di Kota Malang

Abstract

This study aims to identify the role of Islamic banking in the development of Micro, Small, and Medium Enterprises (MSMEs) in Malang City and to examine the challenges faced by MSME actors in applying for financing from Islamic banks. Using a descriptive qualitative approach, this research explores and understands the experiences of MSME actors through interviews, observations, and documentation. Data collection techniques were conducted through literature studies and field research, including direct interviews with MSME actors and field observations. The results show that Islamic banking plays a crucial role in providing financing alternatives following Sharia principles for MSMEs. However, the application process often encounters obstacles such as the complexity of requirements, lack of experience, and concerns about risks and collateral. To overcome these challenges, process simplification, financial literacy enhancement, and support for business actors are needed. Although Islamic banking has great potential in supporting MSME growth, especially in the halal sector in Malang City, challenges still need to be addressed to improve access to and utilization of Islamic financing by MSMEs. Efforts to simplify procedures, enhance financial literacy, and provide more intensive support to business actors are essential to maximize the role of Islamic banking in the development of MSMEs in Malang City

Keywords: The Contribution of Islamic Banking Financing, MSME Development.