Presenters: Muhammad Khozin Ahyar, Catur Kurniawan, Dimas Riski Efendi
Affiliation: Politeknik Negeri Samarinda
Room: 3
ICIES News- At the 4th International Conference on Islamic Economics Studies (ICIES) 2024, researchers Muhammad Khozin Ahyar, Catur Kurniawan, and Dimas Riski Efendi from Politeknik Negeri Samarinda presented their study titled “Access To Halal MSME Financing At Islamic Banks.” The research explores the accessibility of financing for Micro, Small, and Medium Enterprises (MSMEs) at Islamic banks, particularly in the context of the digital transformation accelerated by the Covid-19 pandemic.
The study highlights how the pandemic prompted a faster digital shift among Islamic banks in Indonesia, driven by restrictions on community activities. Islamic banks have since sought to optimize and strategize the development of their office services, including branch offices (KC), sub-branch offices (KCP), and cash offices (KK). Despite this digital push, the financing process for MSMEs still heavily relies on face-to-face interactions, which poses challenges for MSME customers who often face information, access, and guarantee limitations.
Using a quantitative research approach and SmartPLS for analysis, the study evaluates the effectiveness of various factors influencing MSME financing accessibility. The results from the outer model test indicate that all variables used in the study are valid (AVE values of 1.000 > 0.50) and reliable (Cronbach’s alpha and rho_A values of 1.000 > 0.75). The inner model test findings reveal that the office network and IRDPK variables significantly impact MSME financing. In contrast, the ATM variable has a moderate influence, while the IRPBY variable does not positively influence MSME financing.
The presentation in Room 3 at ICIES 2024 sheds light on the critical elements affecting halal MSME financing accessibility in Islamic banks. The researchers emphasize the need for Islamic banks to enhance their office networks and strategies to better support MSMEs, particularly in the digital era. These insights are crucial for policymakers and financial institutions aiming to improve financial inclusion and support the growth of MSMEs in Indonesia.