Islamic Financial Literacy for Indonesian MSMEs during COVID-19 Pandemic: Issues and Importance


  • Adi Saifurrahman IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia
  • Salina Kassim IIUM Institute of Islamic Banking and Finance, International Islamic University Malaysia



Financial literacy has been universally regarded as one of the crucial pillars for the achievement of the financial inclusion programmes. Having financial literacy enables people to make more efficient and effective decisions related to the monetary aspect of their lives. The concept of financial literacy also extends to the domain of business financial management. This paper aims to explore and identify the critical issues, challenges, and opportunities for Micro, Small, and Medium Enterprises (MSMEs) in Indonesia to improve their Islamic financial literacy levels and consequently influence their decision to participate in Islamic financial services. The paper also discusses the critical role of financial literacy for MSMEs in facing the uncertainties brought about by the COVID-19 pandemic. The paper adopts the qualitative method by implementing a critical review of the key literature related to financial literacy, financial inclusion, and MSMEs in Indonesia. Subsequently, the paper reveals several issues and challenges faced by MSMEs, particularly in embracing the Islamic financial literacy concept and suggests several opportunities that may be explored by MSMEs to improve their literacy and consequent inclusion in Islamic financial services in Indonesia.


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How to Cite

Adi Saifurrahman, & Salina Kassim. (2021). Islamic Financial Literacy for Indonesian MSMEs during COVID-19 Pandemic: Issues and Importance. Journal of Islamic Finance, 10, 045 –.




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