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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.

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.

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.

Islamic banking plays a crucial role in providing financing in accordance with Islamic principles, including through the Home Ownership Credit (KPR) product. This study aims to analyze the implementation of the Murabahah and Musyarakah Mutanaqishah (MMQ) contracts in the iB Hijrah KPR financing product at Bank Muamalat KCP Rancaekek. The Murabahah contract is implemented through a sale and purchase mechanism, where the bank purchases the house the customer needs and resells it with an agreed profit margin, thus providing price certainty and a simple process. Meanwhile, the MMQ contract is based on a partnership between the bank and the customer with a concept of joint ownership that gradually decreases, thus creating flexibility and a more balanced risk sharing. This study uses a qualitative descriptive approach with data collection techniques through literature studies, interviews, and observations. The results of the analysis show that the majority of customers prefer the Murabahah contract due to its simplicity, although in the long term, MMQ is seen as more economical and fair. Thus, both contracts are equally relevant to support Sharia-based home ownership. This research is expected to contribute to Islamic banking in improving service quality, strengthening Islamic financial literacy, and encouraging innovation in competitive and sustainable financing products.

The agricultural sector plays a crucial role in the Indonesian economy, contributing significantly to Gross Domestic Product (GDP), employment, and national food security. Conventional financing is often poorly suited to the unique characteristics of the agricultural sector, prompting the exploration of more adaptive alternatives. Islamic banking, with its principles of fairness and risk-sharing, offers innovative financing solutions. One such contract with significant potential but underutilized is the Salam contract, a purchase-and-sell contract where payment is made upfront and goods are delivered at a later date. This study aims to analyze the characteristics of the Salam contract in depth, identify challenges and opportunities in its implementation in the Islamic agricultural sector, and formulate strategies for optimizing its application. Using a qualitative descriptive research method based on literature review and comparative analysis, this article finds that the Salam contract offers an effective financing solution for farmers' working capital needs, price risk mitigation for farmers, and supply security for buyers. Key challenges include the risk of crop failure, quality risk, moral hazard risk, and limited supporting infrastructure and market understanding. Optimizing the Salam contract can be achieved through the development of innovative contract models, strengthening risk management through takaful instrumentation, utilizing digital technology, improving Islamic financial literacy, and collaboration between stakeholders. The implications of this research are expected to provide practical guidance for Islamic financial institutions, farmers, and policymakers to create a more inclusive and sustainable Islamic agricultural financing ecosystem. With the right approach, the Salam contract has the potential to become a key instrument in Islamic agricultural financing. Its widespread implementation can drive the transformation of the agricultural sector toward a more productive and equitable direction. Sustainable efforts are needed to ensure its effective implementation in the field.

The development of Islamic banking plays a crucial role in driving economic growth through the principles of fair finance. However, the performance of Islamic banks still faces challenges in maintaining stable profitability. Two key factors often cited as determinants of performance are risk management and customer satisfaction. On the one hand, effective risk management is necessary to control problem financing, while on the other hand, customer satisfaction fosters loyalty and funding stability. However, the existing literature tends to examine these two aspects separately, thus lacking a complete picture of their integrative relationship with profitability. This study, a systematic literature review (SLR), aims to analyze the relationship between risk management, customer satisfaction, and profitability of Islamic banks, as well as their implications for economic growth. The review process adopted the PRISMA 2020 protocol, encompassing academic publications from 2015–2025 from various databases. Article selection was conducted using strict inclusion and exclusion criteria, ensuring that only relevant studies were further analyzed. The study's findings demonstrate two key pillars supporting Islamic banking performance: effective risk management—particularly in controlling problem financing—and a high level of customer satisfaction, which supports loyalty and the stability of third-party funds. However, the findings also indicate a methodological gap. The literature rarely develops models that examine the simultaneous influence of risk management and customer satisfaction on profitability. Furthermore, the limitations of qualitative research and the weaknesses of customer satisfaction measurement instruments hinder a more comprehensive understanding. In conclusion, this study emphasizes the importance of developing a more integrative theory of Islamic banking performance. Future managerial strategies should emphasize the harmonization of risk management and service orientation, so that Islamic banks not only maintain profitability but also contribute more significantly to economic growth.

Micro, Small, and Medium Enterprises (MSMEs) are an essential pillar of the Indonesian economy, contributing significantly to employment creation, poverty reduction, and income distribution. However, despite their substantial role, MSMEs continue to face a number of persistent challenges, including limited access to capital, low levels of financial literacy, and inadequate utilization of technology. These barriers hinder their ability to grow, compete, and adapt to rapid economic changes. This study aims to explore and analyze the role of Islamic Financial Institutions (IFIs) in empowering MSMEs within the framework of Sharia principles. Employing a descriptive qualitative approach, this research is based on a comprehensive literature review of scholarly articles, official reports, and other relevant academic sources. The findings reveal that IFIs provide both financial and social contributions to MSMEs. Financially, IFIs channel funds through Sharia-compliant contracts such as mudharabah and murabahah, which allow entrepreneurs to access financing without relying on conventional interest-based systems. Socially, IFIs carry out a redistributive role by managing and disbursing zakat, infaq, sadaqah, and waqf (ZISWAF), while also offering entrepreneurship training, mentoring, and technical assistance. These functions collectively enhance MSMEs’ access to capital, strengthen their managerial and operational capacities, and increase competitiveness in both domestic and global markets. Nevertheless, several challenges remain, including the uneven geographical distribution of IFI services, slow adoption of digital technology, and the need for more supportive regulatory frameworks. Strengthening IFIs’ role through policy integration, technological innovation, and collaboration with government and private sectors is essential for maximizing their impact on MSME empowerment. Thus, IFIs not only act as financial intermediaries but also as socio-economic catalysts that support sustainable and inclusive economic development in Indonesia.