Womenomics and Islamic Microfinance in Indonesia: Developing Strategic Model for Financial Inclusion

Abstraksi

Despite the vital function of the financial institution, in fact, most of the developing countries have been facing inadequate level of accessibility of finance. Mainly the banking sector has weaknesses in reaching SMEs (Small medium Enterprises) and the poor as the potential customers. Microfinance has a high potential to perform as a financial intermediary that is viable for the poor and SMEs. Meanwhile, alongside current tremendous development of Islamic bank worldwide, Islamic finance institutions assumed to provide potential financing to the poor and SMEs in the Muslim world. However, only a few studies have rigorously examine the link such important role that can be played by “women entrepreneurs” in their social and business roles. This paper aims to highlight a vital role of Islamic microfinance for poverty alleviation programs in which to expose the strategic role of “Womenomics” in the economy. This notion is in line with financial inclusion goal as the main mission of the Islamic finance is to increase equality and wealth in society. Hence, financial literacy is a necessary condition for Islamic microfinance to have optimum performance. This paper further elaborates on financial education programs as a key success factor in Islamic microfinance programs. In turn, it is believed, it will enhance the potential fund to develop SMEs and poverty alleviation programs.