The Role of MSMEs in Building Sharia Economy in Karawang

Abstract

Micro, Small, and Medium Enterprises (MSMEs) have an important role in supporting the regional economy. Amid the development of the sharia economic system in Indonesia, MSMEs are expected to be able to adopt sharia principles in their operational and financial activities. This study aims to analyze the role of MSMEs in building a sharia economy in Karawang City, as well as to identify challenges and strategies for its implementation. The method used is descriptive qualitative with a literature study approach and field observation. The results of the study indicate that some MSMEs in Karawang have implemented sharia principles in the form of usury-free financing, clear contracts, and business transparency. However, there are still many MSME actors who do not fully understand Sharia economics. Therefore, the active role of local governments and sharia financial institutions is needed in fostering and educating sharia-based MSMEs.