PRODUCTIVE SHARIA FINANCIAL TECHNOLOGY FOR MSMES IN INCREASING THE ECONOMIC INDEPENDENCE OF INDONESIA COMMUNITIES

Abstrak

Micro, Small and Medium Enterprises (MSMEs) have role important in support growth Indonesian economy through creation field work , improvement income society , as well as strengthening economy local . However, limited access to capital sources, low financial literacy, and business management constraints still hinder some MSMEs from developing their businesses. This study aims to analyze the implementation of productive Islamic financing in supporting the development of MSMEs and encouraging increased economic independence for communities in Indonesia using a Systematic Literature Review (SLR) approach. Research data was obtained from various scientific literature in the form of relevant national and international journals, then analyzed using qualitative descriptive methods to identify patterns, relationships, and previous research findings related to Islamic financing and MSMEs. The study results indicate that Islamic financing has a positive contribution in helping MSMEs gain access to capital through mechanisms based on the principles of fairness, cooperation, and risk sharing. This financing not only helps increase production capacity and business development but also plays a role in creating sustainable economic independence for communities. In addition, the development of financial technology such as Islamic fintech presents new opportunities to expand access to financing for MSMEs. However, the implementation of Islamic financing still faces several challenges, such as low Islamic financial literacy, limited access to formal financial services, and less than optimal management of business funds. Therefore, it is necessary to improve financial education, business mentoring, utilize digital technology, and collaborate between the government, Islamic financial institutions, and MSMEs so that Islamic financing can become a more effective, inclusive, and sustainable economic empowerment instrument in Indonesia.