ISLAMIC FINANCIAL INCLUSION AS CAPITAL INCREASE MICRO SMALL AND MEDIUM ENTERPRISE THROUGH MUDHARABAH AGREEMENT

Abstract

Micro Small and Medium Enterprise is one of the economic support of the real sector in Indonesia. Micro, Small and Medium Enterprise became the support of the economy in Indonesia when the monetary crisis occurred at a vulnerable time of 1999-2000. As the monetary crisis topped, the economy in Indonesia, especially in Yogyakarta, returned to normal, but Micro Small and Medium Enterprise encountered several obstacles in carrying out its business activities. The problem is the lack of capital. Because it is considered not bankable, making Micro Smal and Medium Enterprise growth especially in Yogyakarta is not optimal. With a fairly rapid growth in the Sharia Banking sector which is an alternative to the progress of Micro Small and Medium Enterprise through existing banking products. One of them is quite popular, the Mudharabah contract. This is where Islamic banking becomes a role in the growth of Micro Small and Medium Enterprise in Yogyakarta. In this study, it will be examined how the role of Islamic banking through mudharabah contracts for the growth of Micro Small and Medium Enterprises, especially in Yogyakarta, and how big the effect of Islamic banking mudharabah  growth if the contract is widely in Yogyakarta. the method that researchers do is qualitative methods with triangles so that the data found can be processed according to existing realities.