Could the existence of Microfinance Institution for alleviation poverty in rural area? A case study in Women's Cooperative in Magersari Village, Plumpang Sub-district, East Java, Indonesia

DOI

10.2991/icpsuas-17.2018.31How to use a DOI?

Keywords

Microfinance institution, alleviation, poverty, rural area in Java

Abstract

Women's cooperative in rural area is one of the microfinance institutions that provide financial services to the poor society and low-income people. One of the East Java Provincial Government programs in 2010 and 2013 was to provide grants to women's cooperative to empower women in rural area. For that purpose, the research based on qualitative data collection method was conducted in October 2016 to May 2017, focusing on women's cooperative in Magersari Village, Plumpang Sub-district, East Java. This research aims to analyze whether presence of women's cooperative could alleviate poverty in rural area. The sample used in this study chose one of the Women"s Cooperatives that are considered successful by the government. In conclusion that cooperative's loan was used to fulfill the needs of daily living, to pay children's education tuition fee, to purchase agricultural input, to increase capital for productive businesses and others. Based on the analysis of cooperative's loan usage pattern, we could conclude that existence of women's cooperative could empower women because it could contribute to children's education, to improve farming activity, to increase productive business. But on the other hand, the loan provided by the cooperative also causes increased amount of debt. Thus, the existence of women's cooperative is still considered to be important in alleviating poverty in rural area.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Rustinsyah Rustinsyah
AU  - L. Dyson
PY  - 2017/08
DA  - 2017/08
TI  - Could the existence of Microfinance Institution for alleviation poverty in rural area? A case study in Women's Cooperative in Magersari Village, Plumpang Sub-district, East Java, Indonesia
BT  - Proceedings of the 1st International Conference Postgraduate School Universitas Airlangga : "Implementation of Climate Change Agreement to Meet Sustainable Development Goals" (ICPSUAS 2017)
PB  - Atlantis Press
SP  - 138
EP  - 144
SN  - 2352-5398
UR  - https://doi.org/10.2991/icpsuas-17.2018.31
DO  - 10.2991/icpsuas-17.2018.31
ID  - Rustinsyah2017/08
ER  -