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Rahmatina Kasri
Pramesti Dyavi Tamara Dyavi Tamara
Azizon Azizon


Innovative digital financing has taken an increasingly important role alongside the transformative digitalisation of lifestyle, business and economy. One of the current financial innovations to meet this demand is peer-to-peer (P2P) lending. Through P2P lending, a business can borrow business capital easily and without complicated requirements. These features are especially important for Islamic Micro Enterprises (IMEs) in Indonesia, which are constrained by a lack of financing and the complicated borrowing process. Accordingly, this study aims to investigate the impacts of Islamic P2P lending on the business performance of IMEs in Indonesia. The study collected primary data from the borrowers of PT. Amana Fintek Syariah (Ammana), the first Islamic P2P lender in Indonesia specialising in supporting IMEs, and subsequently employed a multivariate regression model to examine the relationships between financing and the IMEs business performance. The main findings show that the amount of financing provided and family involvement in managing the IMEs have positively impacted the IMEs’ profits. However, having too many employees negative impacted the profits. Additionally, age, education and business competition do not significantly influence profits. Therefore, it is suggested that Islamic P2P lending has a positive role in the IME business performance in Indonesia. The results are expected to provide insights for academics, policymakers and other relevant stakeholders in developing Islamic P2P lending in Indonesia and other economies.  

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