TANTANGAN PENGEMBANGAN LKMS MELALUI UMKM DI INDONESIA

Sharia microfinance institutions are institutions specifically established to provide business development services and community empowerment. The development of Islamic Microfinance Institutions in Indonesia has increased quite rapidly and has a very vital role in the progress of the Indonesian economy. The existence of baitul mal wa tamwil (BMT) as one of the pioneers of sharia microfinance institutions in Indonesia. This study uses a qualitative approach. The type of this research approach is descriptive, namely a method to describe a research result, which provides an explanation of the phenomenon to be studied using factual data. The results of the study show that capital is an obstacle faced by MSMEs due to limited information from Islamic financial institutions. This is the challenge that is still being faced related to economic development, including Islamic financial institutions. Islamic financial institutions are still struggling with capital issues, the development of sharia product innovations, to the inadequate quality of human resources