THE ECONOMIC IMPACT AND VALUE CO-CREATION OF COMMUNITY-BASED MICROFINANCE AT BANK INFAQ MASJID RAYA BINTARO JAYA (MRBJ)

• Main Author: Dahri Kusumah, Nurmanjaya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/84025
• Institution: Institut Teknologi Bandung

The Sustainability Development Goal (SDG) number one, i.e., no poverty that aimed to end poverty is one of the most important goals especially for Developing Countries. In Indonesia, poverty remain major challenge. Understanding poverty in Indonesia demand good understanding of Micro, Small and Medium Enterprises (MSME). This is due to the fact that majority (99%) of enterprises fall under MSME that absorb more than 97% of Indonesian workforce. This significant proportion plays major roles in shaping the country economy. If managed well, MSME would significantly contribute to country Gross Domestic Production (GDP) that currently at around 60%. Conversely impartiality could cause the MSME remain struggling with the classic challenges: access to fund and access to market. These two key factors limit their ability to survive, sustain and grow. The credit proportion from Banking sector to MSME that still at the level of 20% provide opportunity for Non-Bank Financial Institution (NBFI) to fill the gap. One NBFI scheme in Indonesia is Bank Infaq. It is a Sharia-based microfinance system that has unique characteristics of inclusive community empowerment and joint risk liability that is best fit for Indonesian local business characteristics. Bank Infaq branch managed Masjid Raya Bintaro Jaya (MRBJ), in Tangerang Selatan district in Indonesia is taken as an exploratory case study to measure its impact and understand its value to the community it has served. With the key important measures explored, a robust and workable scheme and system can be formalized and can further be replicated by other microfinance institutions, hence community empowerment and development can be spread faster towards the noble goal to alleviate poverty in Indonesia