PENDEKATAN INSTITUTIONALIST DALAM KEUANGAN MIKRO DAN PERANNYA TERHADAP PENGENTASAN KEMISKINAN: PERMASALAHAN DAN SOLUSI

Abstract

The practice of microfinance has been argued as one of the most effective strategy to overcome poverty. There are Models of Microfinance, one of them is institutionalist approach or widely known as the commercialization of microfinance. It is argued that microfinance needs to achieve financial sufficiency in order to run independently. Unfortunately, previous researchs showed that institutionalist approach could lead to various problems. More focus on profit and growth has lead microfinance to neglect its original mission: helping the poor ones. Through literature review, this article describes the problems in institutionalist approach of microfinance. Based on the problems, there are three main point of solutions. First, the authors recommend that microfinance institutionalist should not focus only for business and growth, because it can cause failure. Second, the authors recommend that institutions not only provide access to financial services, but also integrate financial services with non-financial services to protect and enhance members’ capability. Third, microfinance needs to establish groups as an effort to form social capital among members and members with institutions, as well as a form of risk mitigation