ABSTRACT
Microfinance Institutions (MFIs), created based on Law No 1 of the Year 2013 concerning Microfinance Institutions, aim to provide legal certainty and fulfill financial service needs for the poor and/or low-income people. Meeting the needs of financial services by increasing access to micro-scale funding, contributing to the increase in economic empowerment and community productivity, as well as increasing the income and welfare of the community. Thus, MFIs can be one of the effective solutions to support the development of Micro, Small and Medium Enterprises (MSMEs) due to their financial service procedures being more flexible and more affordable in rural areas. MSMEs are basically part of the poor who have the willingness and productive ability to improve people’s lives in the regions. MSMEs must be provided the widest access to obtain funding from MFIs. Hence, it is important to know the role of MFIs in supporting the development of MSMEs. associated with improving regional economies.
Keywords: microfinance institutions, medium enterprises, regional economy
