Trimulato Trimulato, Ahmad Rodoni, Erika Amelia, Roikhan Muhammad Azis

Productive Financing of Sharia Banks For MSMEs Development: A Systematic Literature Review

Introduction

Productive financing of sharia banks for msmes development: a systematic literature review. Analyze Sharia banks' productive financing for MSME development in Indonesia. This SLR highlights challenges in financial literacy & regulation, recommending policies for sustainable economic growth.

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in Indonesia’s economy, yet their access to productive financing from Islamic banks remains limited. Despite the growth of Islamic banking, the proportion of productive funding is still low compared to consumer financing, reducing its potential impact on the real sector. This study aims to analyze the contribution of productive funding by Islamic banks to MSME development and identify gaps in product innovation and regulatory challenges the sector faces. Using a systematic literature review (SLR) approach and bibliometric analysis with VOSviewer, the findings reveal that Sharia-based financing schemes such as mudharabah and musyarakah offer significant potential to enhance MSME resilience. However, limited financial literacy, product diversification, and stringent collateral requirements remain major barriers. This study recommends policies to improve Sharia financial literacy, develop flexible financing products, and reform regulations to support MSME access to productive financing. These findings underscore the strategic role of Islamic banks as catalysts for financial inclusion and drivers of sustainable economic growth.

Review

The study "Productive Financing of Sharia Banks For MSMEs Development: A Systematic Literature Review" addresses a highly relevant and critical issue concerning the role of Islamic banking in fostering economic development in Indonesia. The abstract effectively highlights the paradox of growing Islamic banking alongside limited productive financing for Micro, Small, and Medium Enterprises (MSMEs), which are vital to the national economy. The chosen methodology, a Systematic Literature Review (SLR) augmented by bibliometric analysis using VOSviewer, is appropriate for comprehensively mapping existing research and identifying key themes and gaps. The abstract clearly articulates the study's objective to analyze the contribution of productive funding and pinpoint challenges, and it successfully reveals the significant potential of Sharia-based financing schemes like mudharabah and musyarakah in enhancing MSME resilience. While the study effectively identifies several pertinent barriers, including limited financial literacy, insufficient product diversification, and stringent collateral requirements, the abstract could benefit from a clearer exposition of the *depth* to which product innovation and regulatory challenges were analyzed. For instance, while it states the study aimed to identify gaps in product innovation, the abstract primarily lists existing barriers rather than proposing novel innovations or critically evaluating current product shortcomings beyond diversification. Similarly, the "regulatory challenges" are broadly mentioned, but specific areas for reform beyond general support for MSME access are not detailed within the abstract. This leaves a reader wondering about the precise nature of these identified gaps and how the study's findings contribute to a more nuanced understanding of them beyond existing knowledge. Despite these minor points, the study's recommendations are well-aligned with its findings, advocating for improved Sharia financial literacy, the development of flexible financing products, and targeted regulatory reforms to bolster MSME access to productive financing. The abstract concludes by powerfully underscoring the strategic role of Islamic banks as essential catalysts for financial inclusion and drivers of sustainable economic growth, reinforcing the practical and policy implications of the research. This systematic review offers a valuable foundation for policymakers, regulators, and Islamic financial institutions to develop more effective strategies and products, ultimately contributing significantly to both MSME development and the broader economic landscape.

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