INTRODUCTION OF SHARIA FINANCING CONTRACTS FOR THE INDONESIAN MSMEs

Abstract

This is a community service related to the economic society development through introduction of sharia financing contracts for the Indonesian Micro, Small and Medium Enterprise (MSMEs), especially to get the funding of their business. Sharia economics always encourages profit-sharing practices, trading and prohibits usury, which makes Sharia Financial Institutions and stakeholders tend to be more resilient in the face of crises. In fact, there are still many MSMEs who are not familiar with Islamic Financial Institutions. With this phenomenon, it is felt necessary to disseminate to the public about the sharia financing contracts and its multiplier effect on the MSMEs and the economy. For this reason, there is a need for socialization to MSMEs to improve a good understanding of sharia financing contracts and literacy about sharia financing products and of course it can be implemented for MSMEs in Indonesia.