Resilience of Micro, Small and Medium Enterprises (MSMEs) Through Islamic Social Finance (ISF) after the Covid 19 Pandemic

Abstract

Purpose: This research is conducted with the aim of describing several solutions and the role of ISF institutions as immunity for MSMEs after the Covid-19 pandemic in Indonesia. Design/Method/Approach: This study applies a descriptive qualitative content analysis method (Krippendorff, K, 2004) and library research to develop various programs or policy actions towards the recovery of MSMEs in Indonesia. Finding: The results of the study indicate that among the programs or policy which is offered within the framework of the concept and system of ISF are followed: (1) distributing direct cash aids from zakat, infaq and shodaqoh; (2) strengthening waqf in the form of cash waqf, productive waqf, sukuk linked waqf and waqf for infrastructure; (3) leading the business through capital assistance for MSMEs; (4) through the Qardhul Hasan scheme; (5) improving Islamic economic and financial literacy; (6) developing Islamic financial technology. Research Limitation: this research is exploratory in nature which still requires further research using more advanced qualitative methods. For example, using various quasi-qualitative methods such as SEM, analytical network processes and strategic assumption testing, to sharpen the current study. Practical Implications: if this research uses ISF to provide more intensive capital penetration, MSMEs will be able to develop and grow optimally. Social Implication: the success of maximizing capital in MSMEs will be able to make business operators become survivors, and will even accelerate the development of MSMEs so that society will be prosperous..Originality: the covid-19 outbreak has had a broad impact on the health, economic and social sectors which must be resolved promptly, including ISF that must be able to become immunity for MSMEs.