Microfinance and poverty in Indonesia: the macro impact of people’s credit bank
Abstract
The purpose of this paper is to investigate the role of people’s credit banks (BPRs), a predominant form of microfinance in Indonesia, in mitigating poverty. Using panel data from 31 provinces in Indonesia, this study employs static panel and panel models with instrument variables. Our findings substantiate that BPR credit significantly contributes to poverty reduction across various indices, including headcount poverty, poverty gap, and poverty severity measures. The empirical results offer valuable insights into the efficacy of targeted microfinance as a potent tool for poverty alleviation in developing economies.
Keyword : poverty, microfinance, credit, people's credit banks, provincial panel, Indonesia
How to Cite
Ismail, M., Santoso, D. B., & Satria, D. (2024). Microfinance and poverty in Indonesia: the macro impact of people’s credit bank. Journal of Business Economics and Management, 25(4), 647–664. https://doi.org/10.3846/jbem.2024.22001
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Abrar, A., Hasan, I., & Kabir, R. (2023). What makes the difference? Microfinance versus commercial banks. Borsa Istanbul Review, 23(4), 759–778. https://doi.org/10.1016/j.bir.2023.03.007
Adam, L., & Lestari, E. (2017). Indonesia’s guaranteed microfinance programme (KUR): Lessons from the first stage of implementation. Southeast Asian Economies, 34(2), 322–344. https://doi.org/10.1355/ae34-2e
Ahlin, C., & Jiang, N. (2008). Can micro-credit bring development? Journal of Development Economics, 86(1), 1–21. https://doi.org/10.1016/j.jdeveco.2007.08.002
Ahmed, I., & Kitenge, E. (2022). Microfinance outreach and aggregate welfare. Journal of International Development, 34(3), 652–669. https://doi.org/10.1002/jid.3616
Andrews, I., Stock, J. H., & Sun, L. (2019). Weak instruments in instrumental variables regression: Theory and practice. Annual Review of Economics, 11(1), 727–753. https://doi.org/10.1146/annurev-economics-080218-025643
Angrist, J. D., & Krueger, A. B. (2001). Instrumental variables and the search for identification: From supply and demand to natural experiments. Journal of Economic Perspectives, 15(4), 69–85. https://doi.org/10.1257/jep.15.4.69
Asian Development Bank. (2000). Finance for the poor: Microfinance development strategy. Asian Development Bank. https://www.adb.org/sites/default/files/institutional-document/32094/financepolicy.pdf
Asian Development Bank Institute. (2001). Role of financial intermediaries for poverty reduction (ADBI Executive Summary Series No. S60/02).
Banerjee, A., Karlan, D., & Zinman, J. (2015). Six randomized evaluations of microcredit: Introduction and further steps. American Economic Journal: Applied Economics, 7(1), 1–21. https://doi.org/10.1257/app.20140287
Banto, J. M., & Monsia, A. F. (2021). Microfinance institutions, banking, growth and transmission channel: A GMM panel data analysis from developing countries. The Quarterly Review of Economics and Finance, 79, 126–150. https://doi.org/10.1016/j.qref.2020.06.004
Batinge, B. K., & Jenkins, H. (2021). Gender and poverty reduction in Ghana: The role of microfinance institutions. International Journal of Economics and Finance, 13(8), 71–87. https://doi.org/10.5539/ijef.v13n8p71
Beck, T. (2015). Microfinance: A Critical literature survey (IEG Working Paper 2015/4).
Beck, T., Demirgüç-Kunt, A., & Levine, R. (2007). Finance, inequality and the poor. Journal of Economic Growth, 12(1), 27–49. https://doi.org/10.1007/s10887-007-9010-6
Beg, K., Padmapriya, B., Shajar, S. N., Ahmad, M. M., & Faiyyaz, A. G. (2024). The bibliometric analysis of previous twenty- five years’ literature: A microfinance review. Heliyon, 10(3), Article e24979. https://doi.org/10.1016/j.heliyon.2024.e24979
Buera, F. J., Kaboski, J. P., & Shin, Y. (2021). The macroeconomics of microfinance. The Review of Economic Studies, 88(1), 126–161. https://doi.org/10.1093/restud/rdaa047
Buera, F., Kaboski, J., & Shin, Y. (2012). The macroeconomics of microfinance. https://doi.org/10.3386/w17905
Campbell, J. Y., & Mankiw, N. G. (1990). Permanent income, current income, and consumption. Journal of Business & Economic Statistics, 8(3), 265–279. https://doi.org/10.1080/07350015.1990.10509798
Chhorn, D. (2021). Microfinance illusion, poverty and welfare in Cambodia. Journal of the Asia Pacific Economy, 26(4), 694–719. https://doi.org/10.1080/13547860.2020.1826074
de Aghion, B. A., & Morduch, J. (2010). The economics of microfinance (1st ed.). MIT Press.
Deaton, A., & Cartwright, N. (2016). The limitations of randomised controlled trials. VOX, CEPR Policy Portal. https://cepr.org/voxeu/columns/limitations-randomised-controlled-trials
DeLoach, S. B., & Lamanna, E. (2011). Measuring the impact of microfinance on child health outcomes in Indonesia. World Development, 39(10), 1808–1819. https://doi.org/10.1016/j.worlddev.2011.04.009
Demirguc-Kunt, A., Klapper, L., & Singer, D. (2017). Financial inclusion and inclusive growth: A review of recent empirical evidence (Policy Research Working Paper No. 8040). https://doi.org/10.1596/1813-9450-8205
Devi, L. Y. (2016a). Rural Bank development and poverty reduction in Indonesia: Evidence from panel co-integration and causality tests. In V.-N. Huynh, V. Kreinovich, & S. Sriboonchitta (Eds.), Causal inference in econometrics. (pp. 621–635). Springer. https://doi.org/10.1007/978-3-319-27284-9_40
Devi, L. Y. (2016b). The impact of rural bank loans on regional economic growth and regional poverty in Indonesia (NZAE Working Paper No. 10). https://www.nzae.org.nz/wp-content/uploads/2016/10/Laksmi_Devi.pdf
Donou-Adonsou, F., & Sylwester, K. (2016). Financial development and poverty reduction in developing countries: New evidence from banks and microfinance institutions. Review of Development Finance, 6(1), 82–90. https://doi.org/10.1016/j.rdf.2016.06.002
Félix, E. G. S., & Belo, T. F. (2019). The impact of microcredit on poverty reduction in eleven developing countries in south-east Asia. Journal of Multinational Financial Management, 52–53, Article 100590. https://doi.org/10.1016/j.mulfin.2019.07.003
Gloukoviezoff, G. (2016). Evaluating the impact of European microfinance: The foundations (Working Paper No. 033). European Investment Fund.
Goldberg, N. (2005). Measuring the Impact of microfinance: Taking stock of what we know. Grameen Foundation USA Publication Series.
Greenwood, J., & Jovanovic, B. (1990). Financial development, growth, and the distribution of income. Journal of Political Economy, 98(5, Part 1), 1076–1107. https://doi.org/10.1086/261720
Holloh, D. (2001). ProFI Microfinance Institutions Study. https://www.findevgateway.org/sites/default/files/publications/files/mfg-en-paper-microfinance-institutions-study-2001.pdf
Ibrahim, Y., Ahmed, I., & Minai, M. S. (2018). The influence of institutional characteristics on financial performance of microfinance institutions in the OIC countries. Economics and Sociology, 11(2), 19–35. https://doi.org/10.14254/2071-789X.2018/11-2/2
Imai, K. S., Gaiha, R., Thapa, G., & Annim, S. K. (2012). Microfinance and poverty – A macro perspective. World Development, 40(8), 1675–1689. https://doi.org/10.1016/j.worlddev.2012.04.013
Indonesia Financial Services Authority. (2016). Tinjauan Keuangan Mikro Indonesia 2015 [Indonesian Microfinance Review 2015]. Indonesia Financial Services Authority – Asian Development Bank (ADB).
Islam, K., & O’Gorman, M. (2019). Microcredit contract design: A macroeconomic evaluation. World Development, 124, Article 104634. https://doi.org/10.1016/j.worlddev.2019.104634
Ismail, M. (2021). The direct effect of commercial banks on poverty reduction: Evidence from provinces in Indonesia. Applied Economics, 53(56), 6497–6509. https://doi.org/10.1080/00036846.2021.1946474
Johnston, D., & Morduch, J. (2008). The unbanked: Evidence from Indonesia. The World Bank Economic Review, 22(3), 517–537. https://doi.org/10.1093/wber/lhn016
Khan, A. A., Khan, S. U., Fahad, S., Ali, M. A. S., Khan, A., & Luo, J. (2021). Microfinance and poverty reduction: New evidence from Pakistan. International Journal of Finance & Economics, 26(3), 4723–4733. https://doi.org/10.1002/ijfe.2038
Khandker, S. R., Khalily, M. A. B., & Samad, H. A. (2016). Beyond Ending Poverty: The Dynamics of Microfinance in Bangladesh. World Bank. https://doi.org/10.1596/978-1-4648-0894-4
Krahnen, J. P., & Schmidt, R. H. (2021). Development finance as institution building. Routledge. https://doi.org/10.4324/9780429039836
Ledgerwood, J. (1998). Microfinance handbook: An institutional and financial perspective. The World Bank. https://doi.org/10.1596/978-0-8213-4306-7
Levine, R. (2021). Finance, growth, and inequality (IMF Working Paper 2021/164). International Monetary Fund. https://doi.org/10.5089/9781513583365.001
Maeenuddin, Hamid, S. A., Fahlevi, M., Nassir, A. M., & Hashim, P. M. (2023). Predictors of microfinance sustainability: Empirical evidence from Bangladesh. Cogent Economics & Finance, 11(1), Article 2202964. https://doi.org/10.1080/23322039.2023.2202964
Mahmud, K. T., Parvez, A., Ahmed, S. S., & Rafiq, F. (2022). Microcredit and the household food security of the fish farmers: Evidence from rural Bangladesh. Development in Practice, 32(8), 1091–1100. https://doi.org/10.1080/09614524.2022.2101618
Maitrot, M., & Niño-Zarazúa, M. (2017). Poverty and wellbeing impacts of microfinance: What do we know? SSRN. https://doi.org/10.2139/ssrn.3076781
Maksudova, N. (2010). Macroeconomics of Microfinance: How do the channels work? (CERGE-EI Working Papers No. wp423). SSRN. https://doi.org/10.2139/ssrn.1699982
Manko, K., & Watkins, T. A. (2022). Microfinance and SDG 7: Financial impact channels for mitigating energy poverty. Development in Practice, 32(8), 1036–1048. https://doi.org/10.1080/09614524.2020.1863338
McHugh, N., Biosca, O., & Donaldson, C. (2017). From wealth to health: Evaluating microfinance as a complex intervention. Evaluation, 23(2), 209–225. https://doi.org/10.1177/1356389017697622
Morduch, J. (2020). Why RCTs failed to answer the biggest questions about microcredit impact. World Development, 127, Article 104818. https://doi.org/10.1016/j.worlddev.2019.104818
Odell, K. (2010). Measuring of the impact of microfinance: Taking another look. Grameen Foundation.
Patten, R. H., Rosengard, J. k., & Johnston, JR, D. E. (2001). Microfinance success amidst macroeconomic failure: The experience of Bank Rakyat Indonesia during the East Asian crisis. World Development, 29(6), 1057–1069. https://doi.org/10.1016/S0305-750X(01)00016-X
Raihan, S., Osmani, S. R., & Khalily, M. A. B. (2017). The macro impact of microfinance in Bangladesh: A CGE analysis. Economic Modelling, 62, 1–15. https://doi.org/10.1016/j.econmod.2017.01.002
Ravallion, M. (2001). Growth, inequality and poverty: Looking beyond averages. World Development, 29(11), 1803–1815. https://doi.org/10.1016/S0305-750X(01)00072-9
Remer, L., & Kattilakoski, H. (2021). Microfinance institutions’ operational self-sufficiency in sub-Saharan Africa: Empirical evidence. International Journal of Corporate Social Responsibility, 6(1), Article 5. https://doi.org/10.1186/s40991-021-00059-5
Ribeiro, J. P. C., Duarte, F., & Gama, A. P. M. (2022). Does microfinance foster the development of its clients? A bibliometric analysis and systematic literature review. Financial Innovation, 8(1), Article 34. https://doi.org/10.1186/s40854-022-00340-x
Robinson, M. S. (2002). The microfinance revolution: Volume 2. Lessons from Indonesia. World Bank. https://doi.org/10.1596/0-8213-4953-8
Rosengard, J. K., Patten, R. H., Johnston, D. E., & Koesoemo, W. (2007). The promise and the peril of microfinance institutions in Indonesia. Bulletin of Indonesian Economic Studies, 43(1), 87–112. https://doi.org/10.1080/00074910701286404
Seibel, H. D. (2005). The microbanking division of Bank Rakyat Indonesia: A flagship of rural microfinance in Asia (Working Paper No. 2). Universität zu Köln, Arbeitsstelle für Entwicklungsländerforschung (AEF), Köln.
Seibel, H. D., & Parhusip, U. (1997). Microfinance in Indonesia: An assessment of microfinance institutions banking with the poor (Working Paper No. 7). Universität zu Köln, Arbeitsstelle für Entwicklungsländerforschung (AEF), Köln.
Sharma, M., Gupta, M., Sharma, R. L., & Sharma, A. K. (2021). Prospects and challenges of microfinance as a tool in poverty reduction. Academy of Marketing Studies Journal, 25(6), 1–6.
Soemitra, A., Kusmilawaty, & Rahma, T. I. F. (2022). The role of micro Waqf Bank in women’s micro-business empowerment through Islamic social finance: Mixed-method evidence from Mawaridussalam Indonesia. Economies, 10(7), Article 157. https://doi.org/10.3390/economies10070157
Steinward, D. (2013). The Indonesian People’s Credit Bank (BPR). In A. Goenka & D. Henley (Eds.), Southeast Asia’s credit revolution. Routledge. https://doi.org/10.4324/9780203874080
Sulemana, M., Fuseini, M. N., & Abdulai, I. A. (2023). Effects of microfinance and small loans centre on poverty reduction in Wa West District, Ghana. Heliyon, 9(12), Article e22685. https://doi.org/10.1016/j.heliyon.2023.e22685
Sun, S. L., & Liang, H. (2021). Globalization and affordability of microfinance. Journal of Business Venturing, 36(1), Article 106065. https://doi.org/10.1016/j.jbusvent.2020.106065
Suryahadi, A., Suryadarma, D., & Sumarto, S. (2009). The effects of location and sectoral components of economic growth on poverty: Evidence from Indonesia. Journal of Development Economics, 89(1), 109–117. https://doi.org/10.1016/j.jdeveco.2008.08.003
Takahashi, K., Higashikata, T., & Tsukada, K. (2010). The short‐term poverty impact of small‐scale, collateral‐free microcredit in Indonesia: A matching estimator approach. The Developing Economies, 48(1), 128–155. https://doi.org/10.1111/j.1746-1049.2010.00101.x
Tomlinson, M., Ward, C., & Marlow, M. (2015). Improving the efficiency of evidence-based interventions: The strengths and limitations of randomised controlled trials. South African Crime Quarterly, 51, Article 43. https://doi.org/10.4314/sacq.v51i1.5
Tria, D., Harun, M., & Alam, M. (2022). Microcredit as a strategy for employment creation: A systematic review of literature. Cogent Economics & Finance, 10(1), Article 2060552. https://doi.org/10.1080/23322039.2022.2060552
United Nations. (2004). UN launches international year of microcredit 2005. United Nations. https://press.un.org/en/2004/dev2492.doc.htm
van Rooyen, C., Stewart, R., & de Wet, T. (2012). The impact of microfinance in Sub-Saharan Africa: A systematic review of the evidence. World Development, 40(11), 2249–2262. https://doi.org/10.1016/j.worlddev.2012.03.012
Zhuang, J., Gunatilake, H., Niimi, Y., Khan, M. E., Jiang, Y., Hasan, R., Khor, N., Lagman-Martin, A., Bracey, P., & Huang, B. (2009). Financial sector development, economic growth, and poverty reduction: A literature review (Economics Working Papers No. 173). SSRN. https://doi.org/10.2139/ssrn.1617022
Adam, L., & Lestari, E. (2017). Indonesia’s guaranteed microfinance programme (KUR): Lessons from the first stage of implementation. Southeast Asian Economies, 34(2), 322–344. https://doi.org/10.1355/ae34-2e
Ahlin, C., & Jiang, N. (2008). Can micro-credit bring development? Journal of Development Economics, 86(1), 1–21. https://doi.org/10.1016/j.jdeveco.2007.08.002
Ahmed, I., & Kitenge, E. (2022). Microfinance outreach and aggregate welfare. Journal of International Development, 34(3), 652–669. https://doi.org/10.1002/jid.3616
Andrews, I., Stock, J. H., & Sun, L. (2019). Weak instruments in instrumental variables regression: Theory and practice. Annual Review of Economics, 11(1), 727–753. https://doi.org/10.1146/annurev-economics-080218-025643
Angrist, J. D., & Krueger, A. B. (2001). Instrumental variables and the search for identification: From supply and demand to natural experiments. Journal of Economic Perspectives, 15(4), 69–85. https://doi.org/10.1257/jep.15.4.69
Asian Development Bank. (2000). Finance for the poor: Microfinance development strategy. Asian Development Bank. https://www.adb.org/sites/default/files/institutional-document/32094/financepolicy.pdf
Asian Development Bank Institute. (2001). Role of financial intermediaries for poverty reduction (ADBI Executive Summary Series No. S60/02).
Banerjee, A., Karlan, D., & Zinman, J. (2015). Six randomized evaluations of microcredit: Introduction and further steps. American Economic Journal: Applied Economics, 7(1), 1–21. https://doi.org/10.1257/app.20140287
Banto, J. M., & Monsia, A. F. (2021). Microfinance institutions, banking, growth and transmission channel: A GMM panel data analysis from developing countries. The Quarterly Review of Economics and Finance, 79, 126–150. https://doi.org/10.1016/j.qref.2020.06.004
Batinge, B. K., & Jenkins, H. (2021). Gender and poverty reduction in Ghana: The role of microfinance institutions. International Journal of Economics and Finance, 13(8), 71–87. https://doi.org/10.5539/ijef.v13n8p71
Beck, T. (2015). Microfinance: A Critical literature survey (IEG Working Paper 2015/4).
Beck, T., Demirgüç-Kunt, A., & Levine, R. (2007). Finance, inequality and the poor. Journal of Economic Growth, 12(1), 27–49. https://doi.org/10.1007/s10887-007-9010-6
Beg, K., Padmapriya, B., Shajar, S. N., Ahmad, M. M., & Faiyyaz, A. G. (2024). The bibliometric analysis of previous twenty- five years’ literature: A microfinance review. Heliyon, 10(3), Article e24979. https://doi.org/10.1016/j.heliyon.2024.e24979
Buera, F. J., Kaboski, J. P., & Shin, Y. (2021). The macroeconomics of microfinance. The Review of Economic Studies, 88(1), 126–161. https://doi.org/10.1093/restud/rdaa047
Buera, F., Kaboski, J., & Shin, Y. (2012). The macroeconomics of microfinance. https://doi.org/10.3386/w17905
Campbell, J. Y., & Mankiw, N. G. (1990). Permanent income, current income, and consumption. Journal of Business & Economic Statistics, 8(3), 265–279. https://doi.org/10.1080/07350015.1990.10509798
Chhorn, D. (2021). Microfinance illusion, poverty and welfare in Cambodia. Journal of the Asia Pacific Economy, 26(4), 694–719. https://doi.org/10.1080/13547860.2020.1826074
de Aghion, B. A., & Morduch, J. (2010). The economics of microfinance (1st ed.). MIT Press.
Deaton, A., & Cartwright, N. (2016). The limitations of randomised controlled trials. VOX, CEPR Policy Portal. https://cepr.org/voxeu/columns/limitations-randomised-controlled-trials
DeLoach, S. B., & Lamanna, E. (2011). Measuring the impact of microfinance on child health outcomes in Indonesia. World Development, 39(10), 1808–1819. https://doi.org/10.1016/j.worlddev.2011.04.009
Demirguc-Kunt, A., Klapper, L., & Singer, D. (2017). Financial inclusion and inclusive growth: A review of recent empirical evidence (Policy Research Working Paper No. 8040). https://doi.org/10.1596/1813-9450-8205
Devi, L. Y. (2016a). Rural Bank development and poverty reduction in Indonesia: Evidence from panel co-integration and causality tests. In V.-N. Huynh, V. Kreinovich, & S. Sriboonchitta (Eds.), Causal inference in econometrics. (pp. 621–635). Springer. https://doi.org/10.1007/978-3-319-27284-9_40
Devi, L. Y. (2016b). The impact of rural bank loans on regional economic growth and regional poverty in Indonesia (NZAE Working Paper No. 10). https://www.nzae.org.nz/wp-content/uploads/2016/10/Laksmi_Devi.pdf
Donou-Adonsou, F., & Sylwester, K. (2016). Financial development and poverty reduction in developing countries: New evidence from banks and microfinance institutions. Review of Development Finance, 6(1), 82–90. https://doi.org/10.1016/j.rdf.2016.06.002
Félix, E. G. S., & Belo, T. F. (2019). The impact of microcredit on poverty reduction in eleven developing countries in south-east Asia. Journal of Multinational Financial Management, 52–53, Article 100590. https://doi.org/10.1016/j.mulfin.2019.07.003
Gloukoviezoff, G. (2016). Evaluating the impact of European microfinance: The foundations (Working Paper No. 033). European Investment Fund.
Goldberg, N. (2005). Measuring the Impact of microfinance: Taking stock of what we know. Grameen Foundation USA Publication Series.
Greenwood, J., & Jovanovic, B. (1990). Financial development, growth, and the distribution of income. Journal of Political Economy, 98(5, Part 1), 1076–1107. https://doi.org/10.1086/261720
Holloh, D. (2001). ProFI Microfinance Institutions Study. https://www.findevgateway.org/sites/default/files/publications/files/mfg-en-paper-microfinance-institutions-study-2001.pdf
Ibrahim, Y., Ahmed, I., & Minai, M. S. (2018). The influence of institutional characteristics on financial performance of microfinance institutions in the OIC countries. Economics and Sociology, 11(2), 19–35. https://doi.org/10.14254/2071-789X.2018/11-2/2
Imai, K. S., Gaiha, R., Thapa, G., & Annim, S. K. (2012). Microfinance and poverty – A macro perspective. World Development, 40(8), 1675–1689. https://doi.org/10.1016/j.worlddev.2012.04.013
Indonesia Financial Services Authority. (2016). Tinjauan Keuangan Mikro Indonesia 2015 [Indonesian Microfinance Review 2015]. Indonesia Financial Services Authority – Asian Development Bank (ADB).
Islam, K., & O’Gorman, M. (2019). Microcredit contract design: A macroeconomic evaluation. World Development, 124, Article 104634. https://doi.org/10.1016/j.worlddev.2019.104634
Ismail, M. (2021). The direct effect of commercial banks on poverty reduction: Evidence from provinces in Indonesia. Applied Economics, 53(56), 6497–6509. https://doi.org/10.1080/00036846.2021.1946474
Johnston, D., & Morduch, J. (2008). The unbanked: Evidence from Indonesia. The World Bank Economic Review, 22(3), 517–537. https://doi.org/10.1093/wber/lhn016
Khan, A. A., Khan, S. U., Fahad, S., Ali, M. A. S., Khan, A., & Luo, J. (2021). Microfinance and poverty reduction: New evidence from Pakistan. International Journal of Finance & Economics, 26(3), 4723–4733. https://doi.org/10.1002/ijfe.2038
Khandker, S. R., Khalily, M. A. B., & Samad, H. A. (2016). Beyond Ending Poverty: The Dynamics of Microfinance in Bangladesh. World Bank. https://doi.org/10.1596/978-1-4648-0894-4
Krahnen, J. P., & Schmidt, R. H. (2021). Development finance as institution building. Routledge. https://doi.org/10.4324/9780429039836
Ledgerwood, J. (1998). Microfinance handbook: An institutional and financial perspective. The World Bank. https://doi.org/10.1596/978-0-8213-4306-7
Levine, R. (2021). Finance, growth, and inequality (IMF Working Paper 2021/164). International Monetary Fund. https://doi.org/10.5089/9781513583365.001
Maeenuddin, Hamid, S. A., Fahlevi, M., Nassir, A. M., & Hashim, P. M. (2023). Predictors of microfinance sustainability: Empirical evidence from Bangladesh. Cogent Economics & Finance, 11(1), Article 2202964. https://doi.org/10.1080/23322039.2023.2202964
Mahmud, K. T., Parvez, A., Ahmed, S. S., & Rafiq, F. (2022). Microcredit and the household food security of the fish farmers: Evidence from rural Bangladesh. Development in Practice, 32(8), 1091–1100. https://doi.org/10.1080/09614524.2022.2101618
Maitrot, M., & Niño-Zarazúa, M. (2017). Poverty and wellbeing impacts of microfinance: What do we know? SSRN. https://doi.org/10.2139/ssrn.3076781
Maksudova, N. (2010). Macroeconomics of Microfinance: How do the channels work? (CERGE-EI Working Papers No. wp423). SSRN. https://doi.org/10.2139/ssrn.1699982
Manko, K., & Watkins, T. A. (2022). Microfinance and SDG 7: Financial impact channels for mitigating energy poverty. Development in Practice, 32(8), 1036–1048. https://doi.org/10.1080/09614524.2020.1863338
McHugh, N., Biosca, O., & Donaldson, C. (2017). From wealth to health: Evaluating microfinance as a complex intervention. Evaluation, 23(2), 209–225. https://doi.org/10.1177/1356389017697622
Morduch, J. (2020). Why RCTs failed to answer the biggest questions about microcredit impact. World Development, 127, Article 104818. https://doi.org/10.1016/j.worlddev.2019.104818
Odell, K. (2010). Measuring of the impact of microfinance: Taking another look. Grameen Foundation.
Patten, R. H., Rosengard, J. k., & Johnston, JR, D. E. (2001). Microfinance success amidst macroeconomic failure: The experience of Bank Rakyat Indonesia during the East Asian crisis. World Development, 29(6), 1057–1069. https://doi.org/10.1016/S0305-750X(01)00016-X
Raihan, S., Osmani, S. R., & Khalily, M. A. B. (2017). The macro impact of microfinance in Bangladesh: A CGE analysis. Economic Modelling, 62, 1–15. https://doi.org/10.1016/j.econmod.2017.01.002
Ravallion, M. (2001). Growth, inequality and poverty: Looking beyond averages. World Development, 29(11), 1803–1815. https://doi.org/10.1016/S0305-750X(01)00072-9
Remer, L., & Kattilakoski, H. (2021). Microfinance institutions’ operational self-sufficiency in sub-Saharan Africa: Empirical evidence. International Journal of Corporate Social Responsibility, 6(1), Article 5. https://doi.org/10.1186/s40991-021-00059-5
Ribeiro, J. P. C., Duarte, F., & Gama, A. P. M. (2022). Does microfinance foster the development of its clients? A bibliometric analysis and systematic literature review. Financial Innovation, 8(1), Article 34. https://doi.org/10.1186/s40854-022-00340-x
Robinson, M. S. (2002). The microfinance revolution: Volume 2. Lessons from Indonesia. World Bank. https://doi.org/10.1596/0-8213-4953-8
Rosengard, J. K., Patten, R. H., Johnston, D. E., & Koesoemo, W. (2007). The promise and the peril of microfinance institutions in Indonesia. Bulletin of Indonesian Economic Studies, 43(1), 87–112. https://doi.org/10.1080/00074910701286404
Seibel, H. D. (2005). The microbanking division of Bank Rakyat Indonesia: A flagship of rural microfinance in Asia (Working Paper No. 2). Universität zu Köln, Arbeitsstelle für Entwicklungsländerforschung (AEF), Köln.
Seibel, H. D., & Parhusip, U. (1997). Microfinance in Indonesia: An assessment of microfinance institutions banking with the poor (Working Paper No. 7). Universität zu Köln, Arbeitsstelle für Entwicklungsländerforschung (AEF), Köln.
Sharma, M., Gupta, M., Sharma, R. L., & Sharma, A. K. (2021). Prospects and challenges of microfinance as a tool in poverty reduction. Academy of Marketing Studies Journal, 25(6), 1–6.
Soemitra, A., Kusmilawaty, & Rahma, T. I. F. (2022). The role of micro Waqf Bank in women’s micro-business empowerment through Islamic social finance: Mixed-method evidence from Mawaridussalam Indonesia. Economies, 10(7), Article 157. https://doi.org/10.3390/economies10070157
Steinward, D. (2013). The Indonesian People’s Credit Bank (BPR). In A. Goenka & D. Henley (Eds.), Southeast Asia’s credit revolution. Routledge. https://doi.org/10.4324/9780203874080
Sulemana, M., Fuseini, M. N., & Abdulai, I. A. (2023). Effects of microfinance and small loans centre on poverty reduction in Wa West District, Ghana. Heliyon, 9(12), Article e22685. https://doi.org/10.1016/j.heliyon.2023.e22685
Sun, S. L., & Liang, H. (2021). Globalization and affordability of microfinance. Journal of Business Venturing, 36(1), Article 106065. https://doi.org/10.1016/j.jbusvent.2020.106065
Suryahadi, A., Suryadarma, D., & Sumarto, S. (2009). The effects of location and sectoral components of economic growth on poverty: Evidence from Indonesia. Journal of Development Economics, 89(1), 109–117. https://doi.org/10.1016/j.jdeveco.2008.08.003
Takahashi, K., Higashikata, T., & Tsukada, K. (2010). The short‐term poverty impact of small‐scale, collateral‐free microcredit in Indonesia: A matching estimator approach. The Developing Economies, 48(1), 128–155. https://doi.org/10.1111/j.1746-1049.2010.00101.x
Tomlinson, M., Ward, C., & Marlow, M. (2015). Improving the efficiency of evidence-based interventions: The strengths and limitations of randomised controlled trials. South African Crime Quarterly, 51, Article 43. https://doi.org/10.4314/sacq.v51i1.5
Tria, D., Harun, M., & Alam, M. (2022). Microcredit as a strategy for employment creation: A systematic review of literature. Cogent Economics & Finance, 10(1), Article 2060552. https://doi.org/10.1080/23322039.2022.2060552
United Nations. (2004). UN launches international year of microcredit 2005. United Nations. https://press.un.org/en/2004/dev2492.doc.htm
van Rooyen, C., Stewart, R., & de Wet, T. (2012). The impact of microfinance in Sub-Saharan Africa: A systematic review of the evidence. World Development, 40(11), 2249–2262. https://doi.org/10.1016/j.worlddev.2012.03.012
Zhuang, J., Gunatilake, H., Niimi, Y., Khan, M. E., Jiang, Y., Hasan, R., Khor, N., Lagman-Martin, A., Bracey, P., & Huang, B. (2009). Financial sector development, economic growth, and poverty reduction: A literature review (Economics Working Papers No. 173). SSRN. https://doi.org/10.2139/ssrn.1617022