Main Article Content
Purpose – This research aims to formulate and design strategies for optimizing Islamic Bank financing in order to develop Micro, Small and Medium Enterprises (MSMEs) in Indonesia.
Design/Methodology/approach - SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) consists of 1) Internal Factor Evaluation and External Factor Evaluation, 2) SWOT Matrix (S-O Strategies, S-T Strategies, W-O Strategies, and W-T Strategies), and 3) Weighted Score Table (Main strategies).
Findings – From the SWOT analysis, it is possible to formulate and design the strategies for optimizing Islamic Bank financing in order to develop Micro, Small and Medium Enterprises (MSMEs) in Indonesia. The strategies include: increasing the distribution of financing for MSMEs; conducting assessment towards MSMEs management aspect, production capacity and marketing, and the impact of MSMEs on the economy; conducting guidance or fostering towards MSMEs business management, MSMEs operational activities, marketing of MSMEs business products, and MSMEs financial management; and conducting supervision towards MSMEs financing use, MSMEs business development, MSMEs financial reports, and MSMEs financing returns.
Research limitation/implications – This paper provides an understanding of MSMEs development in Indonesia through Islamic bank financing.
Practical implications – From the preparation of strategies using SWOT analysis, it can be a guide for Islamic Banks in national economy development through the distribution of financing to MSMEs.
Originality/Value – This paper integrates SWOT analysis into the banking world, especially Islamic Banks in designing strategies for developing MSMEs in Indonesia.