The Impact of Financing Policies on the Development of Micro-Economic Projects in Islamic Banks: An Applied Descriptive Study on Bank Syariah Indonesia (BNI) – Jakarta Branch

Abstract

This study investigates the role of financing policies in developing small economic enterprises through a descriptive applied framework at BNI Sharia Bank, Jakarta Branch, Indonesia. The research evaluates how Islamic financial institutions support micro and small-scale projects, identifies structural and administrative impediments, and proposes viable solutions to enhance operational efficacy. Utilizing a qualitative descriptive methodology, the study incorporates primary interviews with key administrative personnel and secondary literature reviews. The findings indicate that Islamic financing mechanisms—particularly profit-and-loss sharing modes such as Mudaraba and Musharaka—foster optimal resource allocation, encourage entrepreneurial innovation, and stimulate macroeconomic growth by supporting enterprises that constitute a substantial portion of the bank's portfolio. Furthermore, the research highlights critical challenges, including regulatory constraints, liquidity fluctuations, and a shortage of personnel dually trained in modern finance and Islamic jurisprudence. The study concludes with strategic recommendations to refine financing frameworks, strengthen corporate governance, and expand the developmental impact of Islamic banking in emerging markets.