ABSTRACT

Financial inclusion becomes an interesting factor to be studied nowadays, because financial inclusion is one of the determinants of success of SMEs in obtaining capital for business development. SMEs can be a container to drive the real sector, because the majority of business units in Indonesia is SME, but SMEs have capital constraints that can not develop properly. Therefore, this study aims to analyze the level of inclusion of Islamic finance for SMEs, as well as the level of profit loss sharing and non-performing loans for SMEs. The population in this study are all financial statements of Sharia Commercial Bank and Sharia Business Unit in Indonesia. The sample is the financial report of Sharia Commercial Bank and Sharia Business Unit from 2014-2016. Data analysis was conducted using descriptive analysis. Financial inclusion in this case is viewed from the supply side (supply side), namely the amount of financing disbursed to SME and non-SME the level of profit sharing, and problematic financing experienced by SME and non-SME. The results show that the level of inclusion of Islamic finance for SME in Indonesia is quite high but majority still use murabahah (buy-sell) contract in which the involvement of SME in moving the real sector is not maximized, SME financing rate is higher than non-SME financing and non-performing financing for SME is higher than non-SME financing.

Keywords: Islamic Financial Inclusion; Small Medium Enterprise; Profit-Loss Sharing and Non-Performing Financing