The Role of Islamic Economic Institutions to Recover Real Sector of SMEs During COVID-19 Pandemic

Islamic economics prioritizes the real sector, including SMEs and makes Islamic Economic institutions supporters and drivers of the real sector. The market share of sharia financial has reached 8.5 per cent and will continue to grow and develop. Since the emergence of the coronavirus outbreak, it has eroded and slowed down economic activity, including in the SMEs sector. SMEs are among the ones that have been significantly affected by the coronavirus. To restore the economic activities of SMEs, the Islamic Economic Institutions have a role to be able to restore the economic activities of SMEs. This study aims to determine the development of Islamic economic institutions, and this type of research is library research with qualitative characteristics. Sources of data in this research are secondary data sourced from several institutions that have been presented. The limitation of this study is only for a few Islamic economic institutions related to SMEs. The data analysis technique used in this research is descriptive qualitative. Describing the object of research on the development of Islamic economic institutions and the role of Islamic economic institutions to recover the real sector of SMEs is included in the analysis technique. The results of this study indicate the development of Islamic economic institutions. Sharia Financing Banking (BPRS) grew by 349.34 for income, Sharia Microfinance Institutions (LKMS) grew by 11.75 per cent for financing, Sharia Peer To Peer Lending (P2P) institutions experienced a decrease in assets by 0.05 per cent. Social institutions, the growth of social fund collection was 48.08 per cent at Insisatif Zakat Indonesia (IZI), and the growth in distribution of social funds by 114.27 per cent Badan Amil Zakat Nasional (BAZNAS). The role of Islamic economic institutions in the recovery of the real sector of SMEs amid the Covid-19 outbreak, namely optimizing finance for SMEs, assisting financing customers, providing relief for affected customers, participating in marketing customer products online, maximizing profit-sharing system, strengthening partnerships, and maximizing the distribution of social funds for SMEs economic activities.

Islamic economics prioritizes the real sector, including SMEs and makes Islamic Economic institutions supporters and drivers of the real sector. The market share of sharia financial has reached 8.5 per cent and will continue to grow and develop. Since the emergence of the coronavirus outbreak, it has eroded and slowed down economic activity, including in the SMEs sector. SMEs are among the ones that have been significantly affected by the coronavirus. To restore the economic activities of SMEs, the Islamic Economic Institutions have a role to be able to restore the economic activities of SMEs. This study aims to determine the development of Islamic economic institutions, and this type of research is library research with qualitative characteristics. Sources of data in this research are secondary data sourced from several institutions that have been presented. The limitation of this study is only for a few Islamic economic institutions related to SMEs. The data analysis technique used in this research is descriptive qualitative. Describing the object of research on the development of Islamic economic institutions and the role of Islamic economic institutions to recover the real sector of SMEs is included in the analysis technique. The results of this study indicate the development of Islamic economic institutions. Sharia Financing Banking (BPRS) grew by 349.34 for income, Sharia Microfinance Institutions (LKMS) grew by 11.75 per cent for financing, Sharia Peer To Peer Lending (P2P) institutions experienced a decrease in assets by 0.05 per cent. Social institutions, the growth of social fund collection was 48.08 per cent at Insisatif Zakat Indonesia (IZI), and the growth in distribution of social funds by 114.27 per cent Badan Amil Zakat Nasional (BAZNAS). The role of Islamic economic institutions in the recovery of the real sector of SMEs amid the Covid-19 outbreak, namely optimizing finance for SMEs, assisting financing customers, providing relief for affected customers, participating in marketing customer products online, maximizing profit-sharing system, strengthening partnerships, and maximizing the distribution of social funds for SMEs economic activities.

Introduction
Islam is the perfect religion that regulates all aspects of human life, whether Mahwah worship, human relationship with Allah's creator, or muamalah worship, which governs the relationship between humans and humans. One of the things regulated in Islam today is about economics, some of which are heard more often, discussed more frequently, and are increasingly in demand these days. Every human being always wants his life in this world to be in a happy state, both materially and spiritually, individually and socially. However, in practice, multi-dimensional happiness is complicated to achieve because of the limited ability of humans to comprehend and interpret their desires comprehensively, limitations in balancing aspects of life, and limited resources that can be used to achieve this happiness. Economic problems are only one part of aspects of life that are expected to bring humans to their life goals (P3EI UII.2008).
To find out whether a speech or action is loved and blessed by Allah or not, we must refer to the Quran and as-sunnah, based on the guidance of the ulama ahlus sunnah waljama'ah, not based on their own opinions or volition. And it must be remembered that these words and actions are done sincerely, expecting only the pleasure of Allah. Including the matter of mu'amalah, it has been arranged to avoid things that are prohibited. Muamalah with the notion of social life where everyone does an act in a relationship with other people, which creates a connection of rights and obligations, which is the most significant part of human life. Muamalah activity of the relationship between humans and other humans. A narrower understanding of muamalah is an economic activity related to management and business. The development of Islamic economics must be fought for, not only in terms of content and object but also in terms of the subject of the perpetrators. The actors of the sharia economy must be every Muslim who understands the essence of the Islamic economic system, is a person who physically and mentally struggles to uphold Allah's laws, especially in the economic field. Among the tips to get closer to Allah for sharia economic actors is always to increase the values of belief and faith (Fahmi, 2014).
Islamic law guides its followers on the basic principles in the economic behaviour of individuals leading to general goals (maqashid al-Syariah), which is to realize the well-being of society. From there, Islam provides ample space for scholars to conduct severe and in-depth studies in many fields, including the study of Islamic economics, to select strategies that are appropriate to the existing stages of economic and social development. Islamic law provides space for contextualization (ijtihad) by not committing essential violations. The study so that Islam becomes productive (Empirical Islam). Islamic treasures that offer space for Muslim scholars to conduct in-depth analyses to develop maslahah Islamic knowledge. (Minarni., 2015).
The Islamic economy is built based on Islam. Therefore it is an integral part of Islam. As a derivation of Islam, Islamic economics will follow Islam in various aspects. Islam is a system of life (way of life) that will lead man to something better by the purpose of his life. The Islamic economy was built for a sacred purpose, guided by the teachings of Islam and achieved in ways determined by the teachings of Islam. Therefore, all these things are interconnected and hierarchically structured because the spirit of Islamic economics is reflected in its purpose and supported by its pillars. The goal to achieve falah can only be realized with Islamic economic pillars, namely the fundamental values (Islamic values) and operational pillars, which are reflected in the principles of Islamic economics. From here, you will see an Islamic economic building in a paradigm, both the paradigm in thinking and behaviour and its economic form. (P3EI UII. 2008).
In the Islamic view, the existence of human life is inseparable from the instinct of human life brought from birth consists of 3 things, namely: Instinct of self-defence (ghorizatul baqa), the instinct of self-defence for survival given by God to all living beings, including human beings. The instinct to carry offspring (ghorizatun nau'), the instinct to have offspring is given by Allah to all living beings the same as the instinct of self-defence. Religious instinct (ghorizatun taddayun), religious instinct is only given to God's creation, the best creature on earth named human. The proof that man has a religious instinct is when there is a very scary condition, then in the heart, there is a very scary condition, then in the heart say the existence of the Almighty on this earth and ask for protection from Him. (Gita. 2006) Indonesia is a country with the largest Muslim population in the world. Ideally, it has a great opportunity to become a place for halal product development, including Islamic economic thoughts. With a large population, Indonesia can become a laboratory for the development of Islamic economic science. However, this can be realized if Islam has become a way of life, including decisions in the economic field. Seeing the potential of halal products and services in the world, the potential for sharia business in Indonesia is still enormous, seeing the many possibilities that are well tapped. For this reason, Indonesia still needs to increase further understanding and awareness of halal products and services and the halal lifestyle within the government. (Riyanto. 2011) Sharia-based businesses in this country seem to be starting to grow. This growth is evident in the financial sector. Where we have recorded Islamic commercial banks, Sharia BPR, and Baitul Maal Wattamwil, this institution has millions and even billions of rupiah in public funds by sharia principles. Such financial institutions must operate strictly based on sharia principles. This principle is very different from the principles adopted by non-Islamic financial institutions. The principles and trade principles are; prohibition of applying interest to all forms and types of transactions. Carrying out business and trade activities based on fairness and lawful profit. Take out zakat from the results of his actions. Prohibition of running a monopoly. Working together in building society through business and trade activities that are not prohibited by Islam. From the results of the deliberation (ijma 'international) of Muslim economists and fiqh experts from the Fiqh Academy in Mecca in 1973, it can be concluded that the basic concept of economic relations based on Islamic sharia in the Islamic economic system can be applied in the operations of bank financial institutions and financial institutions. Not a bank. The application of this concept is manifested by the emergence of Islamic financial institutions in the archipelago. (Muhamad. 2009) Muslims in modern life face quite a challenge. On the one hand, he must be able to keep up with global developments in the fields of economy, science, and technology. Meanwhile, on the other hand, we must adhere to the provisions in sharia. In other words, Muslims must survive in the era of globalization while still guided by sharia values. In real life, especially in the Muslim economy, it is difficult to get out of the interest-based ribawi economic system. (Khotibul and Setiawan. 2015). This challenge is increasingly felt today, where the Covid-19 outbreak has emerged and has dramatically impacted the delay in economic activity. Since the emergence of the covid-19 epidemic, it has cut off many activities of institutions, including Islamic financial institutions. Currently, Islamic financial institutions are also affected by covid-19. Therefore, there needs to be a strategic effort so that Islamic financial institutions can survive and continue to contribute to the economy.
In an Islamic economy, the real sector is the primary sector that must be moved, and the financial industry is the support of the industry. More specifically, the entire industry is essential in the Islamic economy, considering that the real sector of the type of Micro, Small, and Medium Enterprises (SMEs) is a sector that involves many parties and has a significant portion in the movement to support the economy in our country. It is known that the private sector is dominated by micro-scale enterprises. This also means that there is a lot of public interest in opening a business or becoming an entrepreneur. Next is how to make micro-scale businesses able to reach a large scale, to improve national economic conditions. Based on the contribution of SMEs to the Gross Domestic Product (GDP) of the sector, it can be seen that the most significant contribution of SMEs is in the Agriculture, Animal Husbandry, Forestry, and Fisheries (PPKP) sector with the UMKM unit of 49.58 per cent, followed by the Trade, Hotel and Restaurant sector (PHR) of 29.56 per cent. The industry in this sector can be developed from micro, and there is an opportunity to be developed into a large enterprise. (Irfan and Laily. 2016) SMEs are one of the sectors that have been severely affected due to the Covid-19 pandemic in Indonesia. The Indonesian Minister of Cooperatives and Small and Medium Enterprises (Minister of SMEs), Teten Masduki, said that this was because SME businesses were daily in nature and relied a lot on direct interaction so that the restrictions on PSBB and social distancing certainly caused demand to drop dramatically. (https://www.cnbcindonesia.com). The outbreak of the new coronavirus or Corona Virus Disease 2019 (Covid-19) is increasingly felt in the domestic economy, especially in terms of consumption, corporations, the financial sector, and Micro, Small, and Medium Enterprises (MSMEs). Based on a study by the Ministry of Finance, Covid-19 poses a threat of losing household income, unable to work to meet their minimum living needs. Especially for the poor and vulnerable and the informal sector. The decline in people's purchasing power is getting higher. For corporations, the economic downturn due to the coronavirus makes manufacturing, trade, transportation, and accommodation sectors such as restaurants and hotels the most vulnerable. Thus, there will be a disruption of business activities that will reduce performance, terminate employment, and even experience the threat of bankruptcy. On the other hand, the worsening of economic activity and the business world will spread to the financial sector. Banking and finance companies have the potential to experience liquidity and insolvency problems. Furthermore, the threat of rupiah depreciation, financial market volatility, and capital flights. The Ministry of Finance reviewed the impact of Covid-19, which made SMEs unable to carry out their business so that their ability to meet credit needs was disrupted. (https://nasional.kontan.co.id) The role of financial institutions to distribute assets is, of course, very important. Naman, the concept of Islamic economics, always requires that trends must follow the movement of money flows in the real sector. In other words, transactions in the financial industry reflect transactions that occur in the real sector. This fact is very different from the existing concept in the conventional economic system, which places the financial market parallel to the real sector market. With this concept, it is typical for transactions in the financial sector to have nothing to do with transactions in the real sector (decoupling). This finding has the potential for the same acceleration of growth in the real sector, which could trigger the risk of a bubble. This risk is unlikely to occur in a sharia-based economic system that is implemented correctly and istiqomah. Islamic economics emphasizes that assets have an influential role in facilitating trade, investment and improvement of social welfare. (Darsono et al. 2017) In these conditions, SMEs need encouragement and support from all parties to rise again amid the Covid-19 outbreak. Islamic economics can take part in the recovery of the SMEs economic sector. The Islamic economic system, which is different from conventional economics, can take advantage of the tools it has in an Islamic economy, transactions containing usury, gharar, maysir, najsy, and other prohibited illegal transactions not permitted. Islamic economy, which is currently in great demand by the community and uses Islamic economic institutions, can contribute to the recovery of the real sector, especially SMEs. Currently, there are many Islamic economic institutions with various variations of their products. In addition to Islamic banks, Islamic non-bank financial institutions and Islamic fintech institutions have also been present. Apart from commercial institutions, the Islamic economy has social institutions, which collect social funds to develop SMEs businesses. All Islamic economic institutions can increase their role in restoring economic conditions amid the covid-19 outbreak.
From the description above, the researcher is interested in conducting more profound research studies on the role of Islamic economic institutions in the recovery of the real sector of SMEs. Thus, this study aims to determine the development of Islamic economic institutions and the role of Islamic economic institutions in the recovery of the real sector of SMEs.
Before conducting the research, the researcher tried to review the literature of previous scientific works related to the title being studied in this case concerning Islamic economic institutions and SMEs. Therefore, the results of previous studies need to be put forward as material for comparison with research conducted by the author. The scientific works that are relevant to the topic that the researchers raised include: At the global economic level, the COVID-19 pandemic has a very significant impact on the domestic economy of the nation-state and the existence of SMEs. The Organization for Economic Co-operation and Development (OECD) report states that this pandemic has implications for the threat of a significant economic crisis marked by the cessation of production activities in many countries and falling public consumption levels. No country can predict when the COVID-19 pandemic will end. A simple way to adapt and deal with this pandemic is to prepare short-term and long-term strategies while continuing to hope that a vaccine for the COVID-19 virus will soon be discovered and mass-produced. The short-term policy that can be implemented is financial assistance in soft loans or direct cash assistance by involving the government and the private sector. Meanwhile, the long-term strategy is focused on the introduction and use of digital technology for SMEs and preparation for entering the Industrial 4.0 era. (Aknol, 2020) Singgih Muheramtohad, in his research entitled The Role of Islamic Financial Institutions in Empowering SMEs in Indonesia. Mention that the characteristics of SMEs are relatively low turnover, have make-shift equipment (traditional/manual), and have a narrower market share. They also need capital to develop a business. This field is what Islamic financial institutions need to fill. In Islamic law, the financing sector for real business is practised directly, both by the Prophet and by the Prophet's companions, including Sahabat Umar Ibn Khattab. Providing financing to SMEs is more effective because it is allocated directly to the needs of small businesses. Another consideration that the government must consider is that the philosophical foundation of this country is Pancasila. In this case, the state is based on social justice for all Indonesian people. (Singgih. 2017) Debby Pramana and Rachma Indrarini, in their research, entitled Sharia BPR Financing in Improving the Welfare of SMEs Based on Maqashid Sharia. Stated that the results of the analysis carried out on BPRS Prima Mandiri Pamekasan financing customers showed a relationship between financing and the welfare of BPRS customers. This information is possible because when customers get financing, the business results will increase. When business results increase, customers can automatically increase their welfare. Increased welfare can be measured by maqashid sharia, such as increasing zakat, infaq, sadaqah for customers, increasing customer daily consumption, fulfilling the need for education, improving future investment, and customers can develop their business. With the increase in customer welfare, it can be said that BPRS Prima Mandiri Pamekasan has an important role, especially in providing capital. However, the BPRS should also provide counselling or outreach for customers, both in training in improving skills, managing finances, and the sociology of religion, so that customers can become better (Permana and Rachma, 2017).
Wahid Wachyu Adi Winarto, in his research, The Role of Fintech in Micro, Small and Medium Enterprises, concluded that there is a role of fintech in financial literacy in SMEs in Pekalongan Batang district and Pemalang district. It can be seen from the average increase in the use of banking products and services, savings and loan cooperatives, and other financial institutions by 6.40% from before the development of fintech. And the role of fintech in financial inclusion in SMEs in the Pekalongan district, Batang district, and Pemalang district. It can be seen that many SMEs owners have used applications and collaborated with banks and savings and loan cooperatives so that they can provide easy access to various types of financial services for banks and savings and loan cooperatives. Financial institutions can reach all MSMEs to remote areas, and fintech is already open access to business finance that is easier and faster from banking institutions and savings and loan cooperatives. And finally, the role of fintech in financial inclusion in MSMEs is that fintech contributes significantly to the empowerment of SMEs and the local economy. (Wahid, 2020) Miftahul Khaerani and Marlina Ekawati in their paper entitled Productive Zakat and Its Role in the development of UMKM Studies at LAZ el-Zawa UIN Maulana Malik Ibrahim Malang. It states that creative, productive distribution is carried out in the SMEs card Hasan and SMEs mudharabah programs. The amount of productive zakat affects the development of the mustahik micro-business. The higher the amount of productive zakat received by the mustahik, the more the mustahik micro-business grows. The length of business and gender were also found to influence the development of the mustahik industry. It is hoped that LAZ el-Zawa can increase zakat funds for creative, productive purposes for mustahik SMEs so that more SMEs can be assisted so that it is expected to reduce poverty. (Khaerani and Marlina, 2017).

Literature Review 2.1 Islamic Economic Institute
The existence of a bank financial institution provides a meeting between parties who need funds for working capital and investment and those who have excess funds. Availability of funds for business is supported by the ease of banking mediation, which encourages business expansion and eliminates idle funds. Islamic banks are banks whose working mechanism uses a profit-sharing system, not using an exciting tool. Islamic Bank is a banking financial institution whose operations and products are developed based on the Al-Quran and the Sunnah of the Prophet SAW. (Gita. 2006) Sharia Banking Financing (BPRS) are banks that carry out business activities based on sharia principles and do not provide services in payment traffic. BPRS is a business entity equivalent to a conventional people's credit bank with the legal form of a Limited Liability Company, Regional Company, or Cooperative. (Acharya and Diana. 2005) The attention of BPRS to the development of the domestic market in SMEs can be seen from the various objectives to be achieved. The goals desired by the establishment of the BPRS are: To improve the economic welfare of the community, especially those with economically weak groups who generally reside in rural areas. Increase employment, especially at the subdistrict level, to reduce the flow of urbanization. Fostering the spirit of Ukhuwah Islamiyah through economic activities to increase per capita income towards an adequate quality of life. Increase the share of the domestic market (domestic economy). (Sumitro. 1996) The role of BMT is to keep people away from non-sharia economic practices. Actively socializing in the community about the importance of the Islamic economic system. Conducting coaching and funding for small businesses. BMT must take an active role in carrying out its function as a microfinance institution, for example, using mentoring, coaching, counselling, and supervision of the businesses of the message or the general public. And can eliminate bad culture that often occurs in small communities. Namely, the dependence on moneylenders or borrowing at interest, which is a burden to society. BMT must provide better services to the community and provide convenience in financing without procedures that can make it difficult for fund applicants. BMT will maintain the economic justice of society with an even distribution. (Sudarsono. 2008) Islamic finance is a financial system whose implementation is based on Islamic law (sharia). The formation of this system is based on the prohibition in Islam to lend or collect loans by charging interest on loans (usury) and the prohibition against investing in prohibited businesses (haram), which the conventional system cannot guarantee. A fintech is a software and modern technology-based business that provides financial services. Fintech companies are generally start-up companies that offer financial services and solutions to customers such as mobile payments, money transfers, loans, fundraising, and even asset management. Sharia fintech means financial services and solutions provided by technology companies/fintech start-ups based on Islamic / sharia laws. (Fintech.2017) Philanthropy is generosity, generosity, or social donations, something that shows love to humans. This term comes from the Greek language, namely Philos (love) and Anthropos (human), which means the conceptualization of the practice of giving, service, and voluntary association to help others in need as expressions of love. Islam as a religion that is syāmil and kāmil and rahmatan lil'alamin presents itself as a religion with a philanthropic face. This form of philanthropy is extracted from religious doctrines that come from the Koran and Hadith, modified with the intermediary mechanism of ijtihad. The institution of zakat, infaq, alms, and waqf appears. The aim is that these treasures do not only circulate among the rich. Islamic philanthropy can also be interpreted as giving charity based on a view to promoting social justice and benefit to the general public. (Kholis et al. 2013)

Micro, Small and Medium Enterprises (SMEs)
A micro business is a business that is managed by an individual or family or several people who do not have a full business license (Nizarul, 2014). Another definition put forward by Warkum Sumitro, micro, small and medium enterprises are businesses carried out by a company with a workforce of not more than 50 people (Warkum, 2004). Meanwhile, according to Musa Hubeis, small businesses and micro can be grouped into the following definitions: 1) independent small businesses, namely without using other workers; 2) Small businesses that use the labour of their family members. And 3) Small businesses that have permanent wage labour. Small businesses in this category are often viewed as businesses that face many difficulties, especially those related to weak managerial capabilities, technology, limited capital, human resources, marketing, and product quality. External factors in small businesses are difficult to overcome, namely unhealthy market structures and the development of foreign companies producing similar products for the same market segment. (Hubeis, 2009) According to law number 20 of 2008, SMEs Micro is a productive business owned by an individual and/or an individual business entity that meets the criteria of a micro business as regulated in the law.
These three types of business have their uniqueness. The difference between SMEs is seen from the net worth and total annual sales of productive companies owned by individuals and/or business entities that are not more significant subsidiaries (Law No. 20/2008 on SMEs). Microbusinesses have a maximum net worth of IDR 50 million. Top annual sales of IDR 300 million. Meanwhile, small businesses are those that have a net worth between Rp. 50 million -500 million. Sales in one year reached Rp. 300 million to Rp. 2.5 billion. Meanwhile, medium-sized businesses have a net worth of Rp. 500 million -10 billion. Annual sales reach IDR 50 billion. The Central Statistics Agency (BPS) classifies firms based on the number of workers. Household businesses have a maximum of 5 workers. Small and medium enterprises have 6 to 19 workers. Medium enterprises have 20 to 29 workers. If there are more than 100 workers, it is classified as a large business that does not include SMEs. (BAPENAS. 2019)

Research Method
This type of research used in this research is library research, using data that has been presented previously with various sources that are considered relevant to the research theme. In this case, it is related to Islamic economic institutions and SMEs. The nature of this research is qualitative research. Research that describes the objects of investigation presented in this case is associated with the development of Islamic economic institutions and the efforts of Islamic economic institutions in the recovery of the real sector of SMEs development during the Covid-19 pandemic.
The data source used in this research is secondary data which the researcher then processes. Data that has been presented by several sources, either from references or from certain institutions. In this study, one of the sources presented by the Financial Services Authority (OJK) is then processed by researchers and several other sources deemed necessary in this study. Secondary data sources come from several Islamic economic institutions.
The limitation of this study is that it focuses only on the theme of Islamic economic institutions and SMEs. Islamic economic institutions are limited to institutions that have a lot of contact with SMEs, such as Sharia Financing Banks (BPRS), Baitul Maal Wattamwil (BMT), Fintech Peer To Peer Landing Syariah (P2P lending), and Islamic Social Institutions. Data collection techniques, namely through collecting data sources that are considered relevant to the research theme. Such as from journals, references, or other sources that have been previously presented. To obtain the data needed to conduct research. The data analysis technique used is descriptive qualitative. Namely describing the object of research, which is then described in the form of a description of the data obtained. In this case, it represents the development of Islamic economic institutions, the existence of SMEs, and the role of Islamic economic institutions in the recovery of the real sector of SMEs amid the Covid-19 outbreak. The data above shows the development of Islamic financial institutions for the Islamic People's Financing Bank (BPRS) from January to May 2020. The most significant growth was in the revenue component, which grew by 349.34 per cent. Meanwhile, two pieces experienced a decline, namely Third Party Funds experiencing a drop of -2.53 per cent, and the component Placements with other Banks experiencing a decrease of 27.95 per cent.

Development of Baitul Maal Wattamwil (BMT) and Islamic Microfinance Institutions
The World Giving Index states that Indonesia is one of the most generous countries in donating cash donations. Even the practice of managing Islamic social funds through Islamic philanthropic institutions and mosques has been prevalent. It has become an essential part of the development and creation of prosperity in Indonesia. On the other hand, the Islamic microfinance sector also continues to grow through cooperatives and Islamic microfinance institutions, especially BMT, a pure Islamic microfinance institution born with Indonesian uniqueness with two functions, namely the amil function (Baitul Maal) and the financing function (Baitut Tamwil). However, even though the development and practice of BMT are very widespread in Indonesia, marked by the establishment of around 4,500 BMT units throughout Indonesia (PBMT, 2018), there are still many problems and challenges faced by this sector, especially related to the sustainability of institutions, so that their benefits are alleviating poverty and the independence of the people's economy is not optimal. (https://knks.go.id) BMT growth is quite significant, where based on data on Venture Capital BMT (PBMT) as a BMT association in Indonesia, around 4,500 BMTs in 2015 served approximately 3.7 million people with assets of around Rp. About 20 thousand people managed Sixteen trillion. Based on the Ministry of Cooperatives and SMEs data, the number of cooperative business units in Indonesia reaches 150,223 business units, of which 1.5 per cent of cooperatives are legal entities. The existence of BMT is expected to be able to encourage the micro and small business sector. This information is considered necessary because BMT is part of driving the Indonesian economy. The number of Indonesians who become entrepreneurs in the SMEs sector continues to increase every year. (https://sharianews.com) From the data above, it shows the development of Islamic Micro Institutions (LKMS) in the period January to May 2020 that the most significant growth was in the financing component with growth reaching 11.75 per cent, while the number of LKMS units did not achieve growth. Then there was a component of the LKMS that experienced a decline, namely the placement of funds which reached 1.95 per cent. The data above shows the conditions of sharia fintech lending in the period of December 2019 to April 2020. It shows that in terms of assets, it has decreased by -0.05 per cent. Likewise, fintech actors in general also experienced a decline of -1.83 per cent. The number of Islamic fintech companies is 12 companies or only 7.45 per cent of the total. Consists of 11 registered companies and one licensed company. In terms of development, the number of sharia fintech lending has not increased. Total fintech lending assets in the April period totaled 3,614,528,740,453, and sharia fintech lending contributed 50,591,727,786 or only 1.40 percent. This data shows that the relatively new Islamic fintech lending is still not growing well, and then it also still makes a relatively small contribution to the total fintech as a whole. In these conditions, Islamic fintech needs to be encouraged to grow and compete with existing fintech while maintaining sharia principles. The growth of sharia fintech lending, which has not been maximized, opens opportunities for sharia fintech to grow better in the future, especially to offer attractive products to the public. So that people can fulfil their finances without violating the rules of sharia principles. Thus, Islamic fintech will be able to contribute more to the economy going forward. The data above shows the development of Islamic Economic Institutions or social institutions, which collect funds from several Islamic Social Institutions, which receive and distribute social funds used in several segments, including economic empowerment. The development of five Amil Zakat institutions that have received permits from the government, namely the National Zakat Agency (BAZNAS), Rumah Zakat, Lazis NU, Indonesian Zakat Initiative (IZI), and Dompet Caring for Ummat Daarut Tauhid (DPU DT) in the period 2017 to 2018 Development of revenue and distribution of social funds for the benefit of the community. From the data above, the receipt of social funds consisting of Zakat, Infaq / Sadaqah, Waqf, Grants, and others, the most significant development in the largest Indonesian Zakat initiative (IZI), reached 60.68 per cent. Then the minor revenue from Rumah Zakat institution is 2.5 per cent. Then the largest distribution of social funds is the National Zakat Agency (BAZNAS) at 114.27 per cent, and the distribution has decreased at Rumah Zakat -0.59 per cent.

The Role of Islamic Economic Institutions in Recovery of the Real Sector of SMEs
Islamic economics is an economic system that carries out its activities based on sharia principles. The Islamic economy prioritizes the real sector and makes the financial sector support for economic activity, including for the real sector. Islamic economics has many institutions that exist today, both for bank and non-bank institutions based on sharia. Islamic economic institutions are widely used today so that their existence is essential in carrying out economic activities. Islamic economic institutions also have institutions for the micro sector and have economic institutions that are social in developing the economy. Islamic financial institutions have a role in the economic recovery, which is currently affected by economic movements amid the conditions of the Covid-19 pandemic.
Islamic economic institutions have a role in restoring SMEs amid the covid-19 outbreak through various products and services owned by Islamic economic institutions. BPRS can provide productive financing for SMEs with easier access and provide relief for customers affected by Covid-19 as well as supplying SMEs support in marketing, especially utilizing technology for financing customers who are constrained by marketing through technology. BMT / microfinance institutions, together with BPRS, can optimize financing for the micro sector and assist SMEs players who become BMT customers so that they can provide input and provide support in running a business. Then the P2P landing type Sharia Fintech institution can increase distribution for MSME businesses, provide convenience for partners affected by SMEs, assist SMEs players, and provide product marketing services through online facilities owned by sharia P2P landing.
Furthermore, Islamic economic institutions that are social in the development of SMEs. Islamic socio-economic institutions can channel their social funds for distribution to the economic sector of SMEs, which can provide easy access to obtain working capital or business capital. Social funds from socio-economic institutions can be channelled for humanitarian emergency activities and the empowerment and development of SMEs. It is a social nature in which the recipients of the funds will use the funds to empower SMEs businesses. In the covid-19 condition, it has an impact on the economy, especially SMEs. In this condition, Islamic economic institutions can play a role in restoring the activities in the real sector of SMEs. Both commercial Islamic economic institutions and social institutions.

Conclusion
The development of Islamic economic institutions today, especially those that drive the economy, especially for the development of the real sector of SMEs. Sharia People's Financing Bank (BPRS), Baitul Maal Wattamwil (BMT)/ Sharia Microfinance Institutions, Sharia Fintech, and Social Institutions, Collectors and Distribution of Zakat, Infaq, Shadaqoh, and others. BPRS in the period January to May 2020 grew by 349.34 per cent for income and experienced a decrease in the component of third party funds by 2.53 per cent. Sharia Microfinance Institutions in the period January 2020 to May 2020 grew by 11.75 for financing and experienced a decrease in the component of placement of funds by -1.95 per cent. Growth in Islamic fintech institutions type P2P Landing sharia in the April 2020 period experienced a decline in assets of -0.05 per cent, and social institutions experienced growth in social fund receipts by 48.05 per cent. Distribution grew by 114.27 per cent at the Amil Zakat Agency National (BAZNAS).
Islamic economic institutions have a role in the recovery of the real sector economy, especially SMEs, due to the impact of the corona covid-19 virus outbreak. In these conditions, Islamic economic institutions can take a role in the recovery of the real sector of SMEs. This role is in controlling the distribution of financing for SMEs, mentoring businesses of affected customers, participating in marketing customer products through technology, and providing relief for affected customers. Impact and support and provide input from businesses and can maximize profit sharing patterns and partnerships with customers. Social institutions in the form of amil zakat institutions can distribute social funds for economic development and production activities.