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MODEL OF BUSINESS ACTIVITIESS OF MICROFINANCE INSTITUTIONS IN INDONESIA

*Etty Mulyati  -  Faculty of Law, Padjadjaran University, Indonesia
Kartikasari Kartikasari  -  Faculty of Law, Padjadjaran University, Indonesia
Rai Mantili  -  Faculty of Law, Padjadjaran University, Indonesia
Nun Harrieti  -  Faculty of Law, Padjadjaran University, Indonesia
Open Access Copyright (c) 2017 Diponegoro Law Review under http://creativecommons.org/licenses/by-nc/4.0.

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Abstract

Micro Finance Institutions (LKM) as non-bank financial institutions, are growing very rapidly in Indonesia. A very large number and scope of business in villages/sub-districts and sub-districts or districts can play a role in an inclusive financial program. The existence of LKM operation much help expand employment and improve the welfare and improving the economy and productivity of the people, especially low-income communities. The problem is how to model the business activities of LKM in Indonesia. This research will use normative juridical approach method, with analytical descriptive research specification. In an effort to provide financial services, which are intended for low-income communities and do not have access to bank financial institutions. LKM can bridge the problems of micro business access to capital is needed in business development. LKM has a different character with the other financial sector businesses, because it is not solely intended for profit. LKM business activities can be done in a conventional or sharia, includes loan/financing for micro enterprises for capital needs in business development, and management of deposits in an effort to bring awareness to the community's fond of saving, besides that LKM also provide consulting services for the purpose of business development community empowerment. To provide legal certainty for the LKM service user community, LKM institutions are regulated in LKM Laws, according to the law the LKM must be a legal entity of the Cooperative or Limited Liability Company Fostering, regulating, and supervising and licensing of LKM is performed by the Financial Services Authority (OJK). 

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Keywords: LKM, micro business, OJK

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  1. A. Books
  2. Lincolin Arsyad (2008), Lembaga Keuangan Mikro, Institusi, Kinerja dan Sustanabilitias, Andi, Yogyakarta
  3. Ronny Hanitijo Soemitro (1990), Metodelogi Penelitian Hukum dan Jurimetri, Ghalia Indonesia, Jakarta
  4. Soerjono Soekanto dan Sri Mamudji (2006), Penelitian Hukum Normatif suatu Tinjauan Singkat, Rajawali, Jakarta
  5. Sumadi (1988), Metode Penelitian, CV Rajawali, Jakarta
  6. Sutyastie Sumitro (2003), Analisis Ekonomi Jawa barat, Unpad Press, Bandung
  7. B. Legislation
  8. Constitution
  9. Law no. 7 of 1992 as amended by Act no. 10 of 1998 on Banking
  10. Law Number 1 Year 2013 about Micro Finance Institution (MFI Act)
  11. Government Regulation Number 89 Year 2014 concerning Interest Rate of Loan Or Return on Financing and Area Coverage of Business Area of Micro Finance Institution
  12. POJK Number 14 / POJK.05 / 2014 on the Development and Supervision of Microfinance Institutions
  13. POJK No. 61 / POJK.05 / 2015 on Amendment to the Financial Services Authority Regulation No. 12 / POJK.05 / 2014 on Business Licensing and Institutions of Microfinance Institutions
  14. POJK No. 62 / POJK.05 / 2015 on Amendment to the Regulation of the Financial Services Authority Number 13 / POJK.05 / 2014 on the Implementation of Microfinance Institutions
  15. SEOJK Number 29 / SEOJK.05 / 2015 on Financial Statements of Microfinance Institutions
  16. C. Other Resources
  17. Statistics Center Indonesia, Statistic of Indonesia
  18. Ashari,(2006), Potensi Lembaga Keuangan Mikro (LKM) Dalam Pembangunan Ekonomi Pedesaan dan Kebijakan Pengembangannya, Analisis Kebijakan Pertanian, Volume 4 No. 2
  19. I Gde Kajeng Baskara,(2003) Lembaga Keuangan Mikro di Indonesia, Jurnal Buletin Studi Ekonomi, Volume 18, No.2
  20. Ihwan Susila,(2007), Analisis Efisiensi Lembaga Keuangan Mikro, Jurnal Ekonomi Pembangunan , Vol. 8, No. 2
  21. National Workshop, Memantapkan Pola Linkage Bank – LKM Dalam Upaya Percepatan Penanggulangan Melalui KUR Mikro, Selasa 10 Juni 2009, Gedung SME’sCO Promotion Center (SPC Jakarta)

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Last update: 2024-05-22 20:26:57

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