IMPACT OF ISLAMIC MICROFINANCE INSTITUTIONS ON STRENGTHENING THE HALAL VALUE CHAIN INDUSTRY

Abstract

Islamic financial institutions are crucial in developing the halal value chain industry. However, this support has not been optimized for Islamic microfinance institutions, especially in the middle to lower-class segmentation. This study aims to analyze the potential and contribution of Islamic microfinance institutions to strengthen the halal value chain industry. Qualitative research methods with descriptive statistical analysis techniques to clarify the analysis. This study found that Sharia microfinance institutions, including Baitul Maal Wat Tamwil, Syariah People's Credit Bank, and Micro Waqf Bank, have significant potential to support the halal value chain industry. Islamic microfinance institutions contribute through the socialization and assistance of the halal industry for micro, small, and medium businesses, financing the halal industry in the trade, restaurant, and hotel sectors and increasing exports through efficiency in production costs.