Policy Directions For Islamic Banking Law in Supporting MSMEs Through A Community Welfare Approach

Uum Ummul Muhimah (Sekolah Tinggi Ilmu Syariah Nahdlatul Ulama Nusantara Tangerang)
Gopala Sasie Rekha (Universitas Winchester)
Fatkhul Muin (Universitas Sultan Ageng Tirtayasa)

Dewantara: Jurnal Pendidikan Sosial Humaniora
Vol. 5 No. 3 (2026): September: Dewantara : Jurnal Pendidikan Sosial Humaniora

This article focuses on aspects of Islamic banking law policy in an effort to promote economic equality. Under the provisions of the Sharia Banking Act, banks that conduct their business activities in accordance with Sharia principles are categorised as Sharia Commercial Banks and Sharia Microfinance Banks. Put simply, Sharia principles in Islamic banking apply Islamic law to banking activities based on fatwas issued by institutions authorised to issue fatwas in the field of Sharia. As a Sharia banking institution, given that the majority of Indonesia’s population is Muslim, the strategic role of Sharia banking is essential in efforts to strengthen businesses rooted in the MSMEs sector, thereby enabling the economic development of the people’s economy. This article focuses on the direction of Sharia banking legal policy in promoting the strengthening of MSMEs through a community welfare approach, utilising qualitative research methods and legal approach as the foundation for this study.