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Baitul Maal wat Tamwil (BMT) is an Islamic microfinance institution that plays an essential role in expanding financial access for low-income communities and supporting sustainable economic development. This article aims to analyze the role of BMT as an inclusive monetary instrument within the framework of the Sustainable Development Goals (SDGs). The study employs a library research approach with descriptive-analytical methods based on secondary data from books, academic journals, research reports, and official documents. The findings show that BMT significantly contributes to financial inclusion through real-sector-based Islamic financing, especially for micro-enterprises and low-income households. Moreover, BMT’s social function—realized through the management of zakat, infaq, and sadaqah—strengthens income redistribution, poverty alleviation, and community welfare. BMT supports several SDG targets, particularly in reducing poverty, creating decent employment, developing MSMEs, and minimizing socioeconomic inequality. However, the optimization of BMT’s role still faces challenges such as limited capital, governance constraints, digital transformation, and institutional strengthening. Therefore, synergy between BMT, the government, regulators, and the community is needed to enhance BMT’s contribution as an inclusive, sustainable, and Sharia-compliant economic development agent.

This study aims to analyze in-depth the interest of the Setro Village community in choosing PNM Mekaar Syariah financing as a source of capital for micro and small enterprises (MSMEs). This phenomenon is interesting because it shows how economic, social, and spiritual factors contribute to the financial decisions of rural communities. This research was conducted using a qualitative exploratory approach, using case studies and in-depth interviews with key informants. To explain the relationship between attitudes, subjective norms, and behavioral control on community intentions to choose Islamic financing, data analysis was conducted thematically. The Theory of Planned Behavior (TPB) framework was also used. The study shows that positive community perceptions of ease of access, economic benefits, and compliance with Islamic principles are the main factors shaping community interest in PNM Mekaar Syariah. Fast, easy, and uncomplicated financing increases consumer trust and enhances perceived behavioral control. Conversely, increased business capital and family income enhance the sustainability of micro-enterprises. The institution is given moral legitimacy and spiritual conviction by the implemented Islamic values, such as the yield system and the freedom from usury. Community participation decisions are also driven by social factors such as group support, advice from group leaders, and the quality of service provided by field officers. Theoretically, this study adds local religiosity and socio-cultural aspects to enrich the application of the Theory of Planned Behavior in the context of rural Islamic finance.

This study examines the strategic role of Islamic banking in expanding financial inclusion and alleviating poverty in Indonesia. Using a qualitative literature review methodology, this research analyzes academic literature, regulations, and official reports to identify the contributions, challenges, and optimization strategies of Islamic banking. Findings indicate that Islamic banking provides financing alternatives aligned with Islamic values through products such as mudharabah, musyarakah, and murabahah, enabling low-income communities to access capital without interest burdens. The management of Islamic social funds including zakat, infaq, sadaqah, and waqf strengthens social capital for micro-enterprise empowerment. However, significant barriers exist, including low Islamic financial literacy, limited access in remote areas, and suboptimal regulations. This study recommends enhancing financial literacy, developing technology-based inclusive products, strengthening supportive regulations, and fostering multi-stakeholder collaboration to optimize the role of Islamic banking as an instrument for inclusive and equitable economic development in Indonesia. The research contributes to the theoretical understanding of Islamic banking's potential in addressing financial exclusion and poverty while providing practical insights for policymakers and banking institutions.

In this era of digital disruption, Islamic banks face significant challenges in maintaining public trust. Despite growth in assets and market share, many believe that Islamic banks operatein much the same way as conventional banks, while financing marginsare often considered higher than conventional bank interest rates. This perception contributes to low public trust, declining interest in saving, and public hesitation in using Islamic financing products. This study aims to explore how entrepreneurialinnovation and internalization of da'wah values canbe strategies to rebuild public trust in Islamic banks. Using the library research method, this study analyzes secondary data from scientific journals, reports, andliterature related to Islamic banking, digital transformation, and Islamic managerial ethics Islam. The results of the study show that the integration of dakwah princip lessuch as transparency, fairness, and ethical management in entrepreneurial practicesand digital innovation can strengthen public trust andincrease the competitiveness of Islamic banks. This study provides theoretical and practical insights for Islamic banks to align digital innovation and business strategies with core Islamic values, there by supporting financial sustainability and social legitimacy.

This study aims to examine the implementation of Qardhul Hasan in Islamic Microfinance Institutions (Baitul Maal wat Tamwil – BMT) in Indonesia through the perspective of qard and ‘Ariyah contracts. The research applies a qualitative descriptive approach using a library research method. Data were collected from scholarly articles, books, and Islamic finance regulations, then analyzed to assess the alignment between fiqh al-mu‘āmalah principles and real-world practices. The findings reveal that qardhul hasan plays a vital role in community empowerment and in promoting Islamic financial inclusion. However, its implementation still faces several obstacles, including high non-performing financing rates, limited social funds, weak sharia supervision standards, and low literacy in fiqh mu‘āmalah among BMT managers. On the other hand, there are significant opportunities for development through digital transformation, human resource capacity building, optimization of social funds (ZISWAF), and the strengthening of regulations based on maqāṣid al-sharī‘ah. This study proposes an integrative model combining qard and ‘ariyah contracts as an alternative approach to enhance the social function of BMTs while maintaining financial sustainability.

This study analyzes the implementation of the murabahah contract in resolving Non-Performing Financing (NPF) for micro-enterprises through collateral auction at the Bank Syariah Indonesia (BSI) Ahmad Yani Branch Office, Area Bandung Raya. The primary objective is to analyze the conformity of the auction process with comprehensive Sharia principles (fiqih muamalah), particularly focusing on the final stage of debt resolution. Employing a qualitative-descriptive method, data was gathered through literature review and direct interviews with personnel from the bank's collection and recovery department. The findings indicate that the NPF resolution procedure is conducted systematically and ethically, beginning with warnings, mediation, and intensive restructuring efforts, such as rescheduling and reconditioning, in line with the spirit of ta'awun and Fatwa DSN MUI No. 48/2005. The auction is only performed as a final, likuidatif resort when the customer is non-cooperative or entirely unable to pay after all 3R attempts have failed. Crucially, the process generally aligns with positive regulations and Sharia provisions, including the transparent process of Muzayyadah through KPKNL. Key aspects of Sharia compliance include the bank's commitment to returning any surplus funds from the collateral sale directly to the customer, thereby avoiding ghulul (fraudulent gain), and the provision of the option to waive the remaining debt for customers deemed genuinely unable to fulfill their obligations, in line with Fatwa DSN MUI No 47/DSN-MUI/II/2005. This research provides practical insights for Islamic financial institutions on balancing effectiveness in debt resolution with the imperative of comprehensive Sharia compliance and ethical transactional justice.

Development financing systems in various developing countries, including Indonesia, have been tested by repeated global crises, such as the 2008 financial crisis, the COVID-19 pandemic, and geopolitical tensions since 2020. The economy is highly dependent on external funding, such as foreign loans and foreign direct investment (FDI), making it vulnerable to disruptions and uncertainty in capital flows. This article examines the strategic role of domestic savings as a stabilizer in maintaining the resilience of development financing using a desk study approach. The literature review shows that mobilizing domestic savings through conventional and Islamic financial institutions is crucial for encouraging long-term investment, reducing dependence on external financing, and strengthening national fiscal independence. In the Islamic economy, the rise of yield-based savings instruments, productive waqf, and retail sukuk has helped expand a stable and equitable domestic funding base. Furthermore, this article finds that digital transformation, fiscal incentive policies, and financial literacy are key to increasing public participation in productive savings. Therefore, increasing domestic savings is an economic tool and a national defense strategy in facing ongoing global crises.

This material provides an in-depth overview of the fundamental distinctions between Islamic banks and conventional banks, covering their underlying principles, contract types, operational mechanisms, legal frameworks, and organizational structures. Islamic banks operate based on Islamic values derived from the Qur’an, Hadith, and the rulings of the National Sharia Council (DSN-MUI), emphasizing strict prohibitions on riba, gharar, and maysir. Contracts such as wadiah, mudharabah, musyarakah, murabahah, ijarah, salam, and istishna’ are applied to promote fairness and profit-sharing. In contrast, conventional banks rely on positive law and interest-based systems as their primary source of income. Legally, Islamic banks are supervised by the Sharia Supervisory Board (DPS) to ensure compliance with sharia principles, while conventional banks adhere solely to general financial regulations set by authorities like the Financial Services Authority (OJK) and Bank Indonesia. The operations of Islamic banks include fund mobilization, financing, and financial services without the use of interest, whereas conventional banks earn revenue from the interest spread between deposits and loans. Although both bank types share a similar organizational structure, Islamic banks incorporate an additional layer of sharia oversight. Overall, Islamic banks aim to balance profitability with ethical and spiritual values (falah), while conventional banks primarily focus on maximizing financial returns. This material highlights Islamic banking as an ethical alternative within modern financial practices, promoting justice, sustainability, and broader economic well-being.

This study aims to analyze the factors influencing members’ decisions to take murabahah financing at BMT Mentari Umat Wangon. The research employed a quantitative approach with descriptive and verification methods. The population consisted of active members using murabahah financing, selected through purposive sampling. Independent variables included service quality, knowledge of Islamic products, trust, location, promotion, profit margin, and financing procedures, while the dependent variable was the members’ financing decision. Data were analyzed using multiple linear regression after validity, reliability, and classical assumption tests. The results show that service quality, Islamic product knowledge, trust, profit margin, and financing procedures significantly affect members’ decisions, whereas location and promotion have no significant effect. The most dominant factors are service quality and institutional trust. These findings support the Theory of Planned Behavior (TPB), which emphasizes that attitudes, trust, and perceived control are key determinants of financial decision-making. The study implies that BMT should enhance service quality, strengthen financial literacy related to Islamic products, and develop digital-based service systems to improve efficiency and competitiveness.

This study explores the integration of Islamic business management principles, blue economy concepts, and innovation strategies in the shrimp farming industry of Sidoarjo, Indonesia, to enhance global competitiveness. The research adopts a qualitative approach through literature review and thematic analysis of relevant sources, aiming to formulate a sustainable business model that harmonizes ethical, environmental, and economic dimensions. Findings reveal that applying sharia-based management—including mudharabah and musyarakah contracts, halal certification, and social responsibility through zakat and waqf—creates an equitable business ecosystem. Simultaneously, blue economy practices such as biofloc technology, waste utilization, and mangrove rehabilitation strengthen environmental sustainability and operational efficiency. Additionally, technological innovation through IoT-based monitoring, digital marketing, and traceability systems significantly improves productivity and market access. The synergy of these elements positions Sidoarjo shrimp as a distinctive product with ethical value, sustainability compliance, and premium market potential. This study suggests policy support for sustainable financing, technology adoption, and certification to scale up implementation and recommends future research to quantify its economic and ecological impacts.

This study aims to analyze the implementation of the murabahah bil wakalah contract within Islamic financing institutions by examining procedural compliance, documentation quality, and the effectiveness of internal monitoring. A qualitative approach was applied using in-depth interviews, structured observations, and document analysis involving purposively selected informants. Data were analyzed using thematic analysis supported by data reduction, coding processes, source triangulation, and conclusion drawing. The findings indicate that the implementation of the contract generally aligns with sharia principles, although operational challenges persist, including inconsistent documentation, varied member understanding of wakalah procedures, and limitations in monitoring practices. Verification processes and margin determination have been properly executed, yet administrative governance requires strengthening to ensure alignment between procedural guidelines and real-world practice. The study highlights the importance of increasing sharia literacy and enhancing human resource capacity to improve efficiency and compliance in implementing murabahah bil wakalah within micro-level Islamic financial institutions.

The rapid development of Islamic banking in Indonesia faces significant challenges in maintaining liquidity and profitability amidst dynamic capital market conditions. The urgency of this study arises from the need to examine whether traditional financial ratios, such as the Financing to Deposit Ratio (FDR) and Return on Equity (ROE), play a decisive role in influencing investment decisions, which are proxied by the Price to Earning Ratio (PER). The main objective of this research is to empirically test the effect of liquidity and profitability, both partially and simultaneously, on investment decisions in Islamic commercial banks listed on the Indonesia Stock Exchange during the 2021–2025 period. This study adopts an associative design with a quantitative approach, utilizing secondary data from financial reports obtained from the IDX, and analyzed using multiple linear regression on 68 observation samples. The findings reveal that neither liquidity nor profitability significantly influence investment decisions, either partially or simultaneously. These results suggest that investors in the Islamic banking sector tend to prioritize non-financial factors such as sharia compliance, governance, macroeconomic conditions, and ESG trends, rather than conventional financial indicators. In conclusion, this research extends the understanding of the limitations of Signaling Theory in the sharia context and recommends the development of a more holistic investment evaluation model. Future studies are encouraged to incorporate non-financial variables for a more comprehensive analysis.

This study is motivated by the challenge of economic independence for Islamic boarding schools amid the transformation of their role in the modern era. Islamic boarding schools no longer function solely as traditional Islamic educational institutions, but have also developed as centers for economic and social empowerment of the community. However, dependence on uncertain external funding sources has prompted the need to develop a sustainable economic ecosystem for Islamic boarding schools in order to strengthen the independence of these institutions. This study aims to explore the development of Islamic boarding school financing management based on economic independence. This study uses a qualitative approach, with an exploratory sequential mixed methods design. The research method uses Research and Development (R&D) with the Analysis, Design, Development, Implementation, Evaluation (ADDIE) development model. The results of the study found that: 1) Financial management in two Islamic boarding schools has been carried out systematically through planning, funding diversification, governance, and continuous evaluation with a contextual approach. 2) The development of financial management has shifted from an administrative function to an economic independence strategy based on the integration of modern governance and Islamic boarding school values.

This study aims to examine how Islamic financing contributes to the empowerment of micro, small, and medium enterprises (MSMEs), particularly in the trade sector. MSMEs play a crucial role as one of the main pillars of the national economy; however, they continue to face various challenges such as limited access to capital, inadequate managerial skills, and low levels of financial literacy. Islamic financing emerges as a solution by applying fundamental Islamic principles, including the prohibition of usury (riba), fairness, and transparency in all financial transactions.The research employs a descriptive qualitative method based on a literature review from various reliable sources. The findings reveal that Islamic financing, through contracts such as murabahah, musyarakah, mudharabah, and ijarah, not only provides access to capital but also offers mentoring and training programs to help entrepreneurs manage their businesses more professionally.The positive impact of Islamic financing can be seen in the improvement of business performance, increased turnover, and enhanced welfare among MSME actors. Furthermore, this system contributes to the stability of the Islamic banking industry and promotes sustainable national economic growth. Therefore, further development of Islamic financing is necessary to expand its reach and benefit a greater number of small and medium enterprises across Indonesia.

This study aims to understand and analyze the diminishing partnership (musyarakah mutanaqisah) financing products in Islamic banking in Indonesia. This research is qualitative and uses a Systematic Literature Review approach by examining various journals from 2020 to 2024 on Google Scholar with the Publish or Perish software. The results indicate that the presence of the musyarakah mutanaqisah contract can be the best solution for property ownership for the community. The demand for housing is currently increasing. The implementation of Musyarakah Mutanaqisah can be a solution for the community in meeting their requirements; however, there are many aspects of the musyarakah mutanaqisah contract that must be understood to ensure that this product operates well in Indonesia. This contract also requires coordinated and comprehensive administrative support.

The development of Islamic banking in Indonesia has introduced the murabahah contract as one of the most dominant financing products. However, in practice, this contract often gives rise to legal disputes, particularly due to default by customers who fail to fulfill their payment obligations in accordance with the agreement. This study focuses on the Palangka Raya Religious Court Decision Number 1/Pdt.GS/2024/PA.PLK, which is noteworthy because, although the substance of the claim has a strong legal basis, it was deemed inadmissible due to a formal defect in the special power of attorney. The aim of this research is to analyze how substantive aspects related to default in murabahah contracts and procedural aspects concerning the mechanism of simplified lawsuits, as well as the validity of a special power of attorney, can affect dispute resolution.This article employs a qualitative method with a normative juridical approach, encompassing legislation, conceptual analysis, and case studies. Primary data were obtained from court decisions, while secondary data were drawn from legal regulations and literature studies. The study shows that substantively, the defendant was proven to be in default for failing to fulfill payment obligations under the murabahah contract, giving the plaintiff a strong legal basis to file a claim. However, procedurally, the lawsuit was inadmissible because the submitted special power of attorney did not meet formal requirements, rendering the plaintiff’s legal representative unauthorized to act on their behalf. The implications of these findings indicate that the success of resolving Islamic banking disputes is not solely determined by the strength of the claim’s substance, but also heavily depends on compliance with the applicable civil procedural laws. Therefore, fulfilling procedural requirements is a crucial factor in ensuring the effectiveness of dispute resolution in Islamic banking.

Islamic Financial Institutions play a vital role in strengthening the Islamic economy in Aceh, particularly through financing micro businesses. Article 14 of Qanun Aceh Number 11 of 2018 sets a target of 40% profit-sharing-based financing for Micro, Small, and Medium Enterprises (MSMEs) by 2024. However, the realization of financing with profit-sharing contracts is still low. This study aims to examine the implementation of Qanun Number 11 of 2018 in facilitating micro business financing in Aceh, identify obstacles in its implementation, and analyze the roles of the government, society, and the private sector in supporting this process. The study uses an empirical juridical method, collecting data through literature studies, interviews, and observations. Data analysis is conducted qualitatively with a prescriptive analytical approach. Challenges to financing distribution include business actors not meeting credit quality assessments and prudential banking standards, causing banks to implement risk management strategies to prevent non-performing loans. Additionally, low financial literacy among business actors remains a significant barrier. The local government supports micro business financing by establishing the Technical Implementation Unit of the Integrated Business Service Office, providing financial assistance, and introducing the draft Qanun of Aceh Sharia Financing Guarantee. Bank Aceh Syariah offers training and coaching for MSMEs, while Bank Syariah Indonesia aids MSMEs through the MSME Center and the Muslim Entrepreneur program. Improving financial literacy is essential for business development. The study recommends that the Aceh Government strengthen the implementation of Qanun Sharia Financial Institutions, increase profit-sharing-based MSME financing, and promote financial literacy.

Bank Syariah Indonesia is a bank whose procedures are carried out in accordance with Islamic law. Bank Syariah Indonesia is a merger of BRI Syariah, BNI Syariah and Bank Mandiri Syariah which was inaugurated on February 1, 2021 or 19 Jumadil Akhir 1442 H. KUR financing is one of the products offered by BSI KC Gatot Subroto Jambi City to Micro, Small and Medium Enterprises (MSMEs). This study aims to determine the role of BSI in developing MSMEs in Jambi City. To determine the development of MSMEs after receiving financing from BSI and what factors cause the increase in the MSME economy in Jambi City. The research used by the researcher is a qualitative method, namely conducting observations, interviews and documentation with sources and collecting documentation in the form of documents related to financing. The data sources used by the researcher are primary data from the first source and secondary data from the second source. The results of this study indicate that: BSI has played a role in developing MSMEs in Jambi City by providing additional capital. Factors that have led to the increase in MSMEs in Jambi City are that BSI KCP Gatot Subroto makes it easier for customers to use KUR financing products and Micro, Small, and Medium Enterprises maximize the capital obtained. The implementation of BSI financing in increasing MSME businesses in Jambi City has been carried out in accordance with procedures, namely providing financing to customers who meet the requirements of BSI KC Gatot Subroto.

This study aims to examine the role of implementing Environmental, Social, and Governance (ESG) principles in supporting the transition toward a green economy in Indonesia from the perspective of Islamic banking. The research employs a qualitative approach using a library research method, reviewing academic literature published between 2020 and 2025. Data were analyzed through thematic content analysis to identify the alignment between ESG dimensions and maqashid shariah, as well as the challenges and opportunities of ESG implementation within Islamic banking institutions. The findings reveal that ESG application in Islamic banking remains partial, with greater emphasis on the environmental dimension through instruments such as green sukuk and green financing. The social and governance aspects have not yet been fully integrated into sustainability strategies. Nevertheless, integrating ESG with maqashid shariah strengthens the role of Islamic banks as agents of change in sustainable development. The study highlights the importance of establishing specific regulations, transparent reporting systems, and sharia-compliant green financial innovations to enhance the contribution of Islamic banking to Indonesia’s green economy.

This article analyzes the fundamental differences between the mechanisms of fund collection and fund distribution in Islamic banks and conventional banks in Indonesia, based on DSN-MUI Fatwas and banking regulations. In general, both types of banks serve the same function—to collect and distribute funds to support economic activities. However, the main distinction lies in their operational principles. Conventional banks operate using a fixed interest system, establishing a creditor–debtor relationship. In contrast, Islamic banks operate based on Sharia principles that prohibit riba (usury). In fund collection, conventional banks use interest-based savings and deposit products, while Islamic banks apply Wadiah (safekeeping) and Mudharabah (profit-sharing investment) contracts. Regarding fund distribution, conventional banks provide interest-bearing loans, whereas Islamic banks offer financing through Sharia contracts such as Murabahah (cost-plus sale), Musyarakah (partnership), Mudharabah (profit-sharing), and Ijarah (leasing), emphasizing cooperation and risk-sharing. Although Islamic banking is regulated under Law No. 21 of 2008 and DSN-MUI Fatwas, it still faces several challenges, including the dominance of Murabahah financing and the low level of public literacy regarding Islamic financial systems.