Universal Journal of Accounting and Finance Vol. 9(4), pp. 757 - 763
DOI: 10.13189/ujaf.2021.090421
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The Performance of Sharia Financing Amid the COVID-19 Pandemic in Indonesia

Muthoifin *
Department of Islamic Law and Economy, Universitas Muhammadiyah Surakarta, Indonesia


The spread of the coronavirus in various countries has brought many changes in various sectors, including the financing sector, many people are doing re-credit, asking for leniency in installments due to limited access, income, employment, and others due to the implementation of the lockdown. Likewise, what happened in Indonesia was that many people panicked about financing at banks and BMTs. The purpose of this research is to analyze the performance of sharia financing in sharia financing institutions and cooperatives amid the Covid-19 pandemic. The method used is field research using the qualitative paradigm with the phenomenological approach. Primary data were collected from observations and direct interviews, while secondary data were obtained through books, journals, articles related to Islamic financing. Following the data processing, analysis was carried out using data validity techniques and data reduction, thus conclusion could be drawn. The research was conducted in three sites; BMT (Baitul Mal wa Tamwil) Amanah Ummah, BMT Kube Colomadu Sejahtera, and BMT Wanita Mandiri. The results of the study showed that sharia financing activities at those BMTs decreased due to the impact of the Covid-19 pandemic. Likewise, the level of customer ability fell due to the physical distancing in some of the customer's residences, reduced income, and increased consumptive costs, which led to default in customers at three different BMT locations. The implications of this research are expected for the customer to be more cooperative in fulfilling obligations in paying installments and being more committed to fulfilling mutual agreements. For BMT managers to be more careful in choosing customers and make better efforts to resolve customer's defaults in a family way. For the Government to be able to make policies related to customers and BMTs, so that they do not feel disadvantaged by the current pandemic conditions and can feel more secure and comfortable in any conditions.

Sharia Financing, Savings and Loan, BMT, Cooperatives, COVID-19 Pandemic

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Muthoifin , "The Performance of Sharia Financing Amid the COVID-19 Pandemic in Indonesia," Universal Journal of Accounting and Finance, Vol. 9, No. 4, pp. 757 - 763, 2021. DOI: 10.13189/ujaf.2021.090421.

(b). APA Format:
Muthoifin (2021). The Performance of Sharia Financing Amid the COVID-19 Pandemic in Indonesia. Universal Journal of Accounting and Finance, 9(4), 757 - 763. DOI: 10.13189/ujaf.2021.090421.