Inclusive Finance In Cooperatives For Community Empowerment Through MSME Development In The City Of Tarakan

Abstract

Inclusive finance has an important role in alleviating poverty and reducing income disparities. One of the development priorities in the Government Work Plan (RKP) is the development of Micro, Small and Medium Enterprises (MSMEs). This is based on the fact that MSMEs have contributed a lot to the national economy. The development of Micro, Small and Medium Enterprises (MSMEs) is very strategic. One form of government support in developing MSMEs in Tarakan City is MSME capital support through cooperatives. Can every community, especially MSME actors, get the same access to Cooperative services or not and what are the implementations and implications of these institutions for community empowerment through MSME development.

This study aims to (1) determine the supporting and inhibiting factors of inclusive finance for empowering farming communities through the development of MSMEs in Cooperatives in Tarakan City (2) Knowing and analyzing the implementation of inclusive finance for empowering farming communities through the development of MSMEs in Cooperatives in Tarakan City. The data analysis method used is descriptive qualitative according to Miles and Huberman. The results of the study show that (1) Financial inclusion in cooperatives in Tarakan City is implemented through a program of providing productive capital. The implementation of this cooperative program has been quite successful, but the performance of the program has not run efficiently. The indicators of financial inclusion in question are indicators of availability of access, indicators of use, and indicators of quality. (2) The implications of financial inclusion show a positive movement in value where most of the recipients have felt the benefits and changes in economic conditions. For those who previously had a business, they felt that there was an increase in income, and for those who started a new business, they felt that there was an increase in economic capacity, although it was not too significant. So, the implications of inclusive finance for Cooperatives in Tarakan City have been able to create empowerment for the community, although not yet significantly.

Keywords:  Inclusive Finance, Empowermen, Cooperatives