The Role of Bank Indonesia (BI) in Developing the Sharia Economy through MSME Empowerment in Batam City

Abstract

This study to aims to determine the role of Bank Indonesia (BI) in improving the sharia economy through the development of Micro, Small and Medium Enterprises (MSMEs) in Batam City, Riau Islands and to find out the supporting and inhibiting factors of BI in improving the sharia economy through the development of MSMEs in Batam City. Types of qualitative descriptive research. Primary data was obtained through interviews and secondary data was obtained from various references, namely websites, journals, and relevant textbooks. Qualitative descriptive analysis techniques were used in this study. The development of the sharia economy in Batam City shows great potential, driven by Malay culture that is thick with Islamic values and the number of Muslim MSMEs engaged in the halal industry sector. However, the main challenges are the limitations of the implementation of the sharia system in multinational companies due to the global Standard Operational Procedure, the low market share of sharia banking, and the lack of public literacy about sharia finance. Bank Indonesia (BI) is committed to overcoming these challenges through education, socialization, and the development of leading sectors, including halal food and modest fashion and halal tourism. In addition, BI will continue to strive to establish cooperation and synergy with various related parties in strengthening the halal ecosystem in the city of Batam. This effort is expected to allow the sharia economy in Batam to grow more rapidly, support Islamic financial inclusion, and strengthen Batam's role as the center of the sharia economy in Indonesia's strategic region.