The Role of Sharia Banking for Small and Medium Micro Enterprises (MSMEs) in Kendari City

This study aims to determine the role of Islamic banking in the MSME sector in Kendari City. The data used are primary data and secondary data. The population and sample are MSME actors in Kendari City and analyzed using multiple linear regression. The results obtained that Islamic banking activities apply sharia principles which include (1)Mudharabah, namely financing based on the principle of profit sharing; (2) Musyarakah, namely financing based on equity participation; (3) Murabahah, namely the principle of buying and selling goods with a profit; (4) Ijarah, namely financing of capital goods based on the principle of pure lease without choice; (5) Ijarah Iqtina, namely financing with ownership of the goods leased from the bank by the customer. The results of the analysis of the role of Islamic banking on MSMEs in Konda District, South Konawe Regency. It is found that the more the role of Islamic banking towards MSMEs is increased, the more MSMEs will develop