The Impact of Covid-19 on MSMEs Financing in Indonesia: The Role of Mudharabah and Musharakah

Abstract

<p><em>One of the economic sectors hardest hit by the Covid-19 in Indonesia is MSMEs. </em><em>During the Covid-19 pandemic, business capital assistance is urgently needed by MSMEs to keep running. Mudharabah and musharakah are Islamic banking financing products explicitly aimed at business needs and investment in the real sector, such as MSMEs</em><em>. Therefore, a more in-depth quantitative analysis is needed regarding the role of mudharabah and musharakah contracts on MSMEs financing during the Covid-19 using panel data regression techniques, with a monthly observation period from March 2020 to May 2021 for all Islamic banking in Indonesia. With the Fixed Effect Model approach, it was found that the mudharabah and musharakah contracts statistically had no significant effect on MSMEs financing during the Covid-19. The conclusion is that during the Covid-19, there was an increase in MSMEs financing with mudharabah contracts, but it was not significant. In contrast, the musharakah contract did not increase the contribution to MSMEs financing.</em></p>

Pembiayaan Dan Keuangan Syariah: Menopang UMKM Dalam Fase Pemulihan Perekonomian (Economic Recovery) Indonesia

“…Tidak hanya berdampak pada kesehatan, pandemi ini juga menyebabkan dampak yang kompleks dan berantai pada aspek sosial dan budaya, terutama dalam bidang ekonomi dari skala kecil hingga besar. Salah satu sektor yang terdampak paling parah oleh Covid-19 adalah Usaha Mikro, Kecil, dan Menengah (UMKM) karena mayoritas beroperasi di industri yang terkait dengan pariwisata, makanan dan minuman, serta industri kreatif dan pertanian (Widyanata et al, 2022).…”