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The purpose of this study is to identify the role of Islamic financing in increasing the productivity of MSMEs in Indonesia by analyzing how the influence of Islamic investment financing and Islamic working capital financing on the productivity of MSMEs. The quantitative approach is used in this study with the type of secondary data compiled in the form of panel data. Data sources are obtained from the publication of the Central Statistics Agency (BPS) and the Financial Services Authority (OJK) using data samples covering 33 provinces in Indonesia with a time span from 2018-2022. In addition to using independent variables and dependent variables, this study also involves two control variables, namely the number of workers and internet users. After testing the results show that Islamic bank financing has an important role in increasing the productivity of MSMEs in Indonesia, it can be seen from the significance of Islamic investment financing and Islamic working capital financing on the productivity of MSMEs. As for together, all variables have an effect on MSMEs.
Supriani et al. (2024) studied this question.