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Abstract

Halal Micro, Small, and Medium Enterprises (MSMEs) have a very strategic role in supporting the national economic structure and strengthening the competitiveness of Indonesia's halal industry in the global market. With a total of more than 65 million business units that contribute around 61% to the national Gross Domestic Product (GDP) and absorb 97% of the workforce, MSMEs are the main pillars in people-based economic development. However, the sector still faces various obstacles, especially in terms of limited access to fair, inclusive, and Islamic economic financing in accordance with Islamic economic principles. The low level of Islamic financial literacy, limited capital, and weak digitalization support are the main factors that slow down the acceleration of the growth of halal MSMEs.


Sharia Microfinance Institutions (MFIs), such as Baitul Maal wat Tamwil (BMT) and sharia cooperatives, have a strategic position in bridging these needs. LKMS not only functions as a financial intermediation institution, but also as an agent of socio-economic empowerment of the ummah through the application of sharia contracts such as murabahah, mudharabah, musyarakah, and qardhul hasan. This research uses a qualitative-descriptive method with literature studies and secondary data analysis from OJK, KNEKS, and Bank Indonesia for the 2020-2024 period. The results of the study show that MFIs have a real contribution in expanding access to sharia financing, especially in the micro and informal sectors. However, the challenges faced include limited capital, lack of integration of the halal certification system with financing, and lack of use of digital technology. Therefore, synergy is needed between the government, financial authorities, MFIs, and MSME actors to strengthen an inclusive and sustainable halal financing ecosystem. This effort is expected to support the realization of Indonesia's vision as the World Halal Industry Center by 2030.

Keywords

Sharia financing halal MSMEs Islamic microfinance institutions financial inclusion islamic economics

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