<![CDATA[This investigation examines the interconnection between certain macroeconomic variables, namely the general price level change rate (Inflation), BI Rate, and exchange rate fluctuations with financing allocation from Islamic banking for micro, small, and medium-scale business entities in the DKI Jakarta region during the period from 2016 to 2023. This research is motivated by the strategic role of DKI Jakarta as the national economic center with the highest GRDP contribution reaching 16.48% of the national GDP and having 337,429 MSME units that absorb 174,965 workers. The applied methodology is a quantitative approach with Multiple linear regression analysis using existing (secondary) monthly-based data from various sources, including BPS, OJK, and Bank Indonesia. This study found that inflation and exchange rates have a positive influence, while BI Rate has a negative influence on Islamic banking financing. The conclusion of this research is that Inflation, BI Rate, and Exchange Rate significantly affect the distribution of Islamic banking financing for MSMEs in DKI Jakarta. This research provides policy recommendations to support MSMEs and guidance for Islamic banking in developing appropriate products. These findings are expected to serve as a reference for academics, policymakers, and MSME actors in responding to economic dynamics and optimizing the role of Islamic principle-based banking in DKI Jakarta.]]>
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