Development Strategy For Islamic Microfinance Institution In Indonesia: Ifas-Efas Matrix Approach

Tika Widiastuti, Aam S. Rusydiana, Irman Firmansyah

2017

Abstract

The emergence of IMFIs (Islamic Microfinance Institution) in Indonesia is an answer to Islamic Banks development that shows middle-top class orientation. In fact, IMFIs have evolved as alternative solution for Indonesian economic relief, especially as partners for small businesses in capital provision. Despite rapid growth, IMFIs still face many obstacles in their development. Those obstacles come from both internal and external factors. This study aims to identify causes and dominant inhibitors for the development of IMFIs in Indonesia by using SWOT (Strengths-Weaknesses-Opportunities-Threats) analysis as well as IFAS-EFAS (Internal Factor Analysis Summary-External Factor Analysis Summary) matrix approaches. Data analysis will be followed by proposed recommendations. According to IFE (Internal Factor Evaluation) result, the primary strength of IMFIs is their segmentation on Micro, Small and Medium Enterprises (MSMEs) and followed by local society high initiative. Meanwhile, highest rank for weakness of IMFIs is human resources’ and entrepreneurship training cost and followed by legal registration cost. On the other side, EFE (External Factor Evaluation) analysis result indicate that highest opportunity for IMFIs is flexibility on economic sector with society’s high willingness to conduct sharia-based transaction as the second place. Meanwhile, the highest rank of threat is high competition among IMFIs, while weak regulations and legality for the IMFIs become their second-ranked threat. Mutual commitment between the stakeholders such as the regulators, academicians, and practitioners is needed to encourage development of IMFIs as part of Islamic financial industry.

Paper Citation

in Harvard Style

Widiastuti T., Rusydiana A. and Firmansyah I. (2017). Development Strategy For Islamic Microfinance Institution In Indonesia: Ifas-Efas Matrix Approach.In 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP, ISBN 978-989-758-315-5, pages 707-711. DOI: 10.5220/0007088407070711

in Bibtex Style

@conference{iciebp17,
author={Tika Widiastuti and Aam S. Rusydiana and Irman Firmansyah},
title={Development Strategy For Islamic Microfinance Institution In Indonesia: Ifas-Efas Matrix Approach},
booktitle={1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,},
year={2017},
pages={707-711},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007088407070711},
isbn={978-989-758-315-5},
}

in EndNote Style

TY - CONF

JO - 1st International Conference on Islamic Economics, Business, and Philanthropy - Volume 1: ICIEBP,
TI - Development Strategy For Islamic Microfinance Institution In Indonesia: Ifas-Efas Matrix Approach
SN - 978-989-758-315-5
AU - Widiastuti T.
AU - Rusydiana A.
AU - Firmansyah I.
PY - 2017
SP - 707
EP - 711
DO - 10.5220/0007088407070711