Restructuring Policy of Shariah Financing Towards UMKM Affected by Covid-19: Maqashid Syariah Perspective

Abstract

One of the efforts that can be made to improve the UMKM class is to provide easy access to capital through Islamic banking institutions. However, currently, UMKM in Indonesia are facing a crisis due to the Covid-19 pandemic and also the economic recession. This study aims to determine the Sharia Banking Financing Restructuring Policy Against UMKM Affected by the Covid-19 Pandemic and Islamic Maqashid Study of Sharia Banking Financing Restructuring Policies on UMKM Affected by the Covid-19 Pandemic. The type of research used in this research is normative juridical research. The approach used is in the form of a statutory approach (statue approach) and a conceptual approach (conceptual approach). Legal materials obtained through literature study are then analyzed by means of descriptive qualitative. The Research Results Show that Restructuring does not mean eliminating the debtor's obligations, but there are new adjustments in paying debt instalments. The restructuring policy of UMKM has the aim of providing legal protection in an effort to maintain economic stability and the health of banks in Indonesia during the Covid-19 pandemic. These efforts contain wisdom and good causes (al-'illah), namely saving banks and UMKM. Meanwhile, its maqashid, namely avoiding economic downturns. From al-'illah, it can be seen that the existence of maqashid sharia, which aims to maintain economic stability and bank health because the essence of the maqhasid concept is to realize goodness.

The Implementation of Maqasid Shariah in Economic Studies

“…Other relevant research, namely Fidhayanti et al (2020), analyzes the policy of restructuring sharia financing for MSMEs affected by Covid-19 from the perspective of Maqashid Syariah; Amaroh & Masturin (2018) examines the performance determinants of Islamic maqasid-based Islamic banks in Indonesia; Sutrisno & Widarjono (2018) reviewed the sharia maqashid index, risk and performance of Islamic banking in Indonesia; Soleh (2016) explains the influence of Islamic maqashid and core competencies on the performance of Islamic banks; and Analia et al (2019) reviewed the performance measurement of Islamic banking in Indonesia using the sharia maqashid index method.…”