Effectiveness of microfinance institutions: Perspective of beef cattle farmers in Sinjai District, South Sulawesi Province

Abstract

Microfinance institutions have been present in several countries as informal financial institutions to overcome the low access to formal financial institutions. The objectives of MFIs in Indonesia, as contained in Law No. 1 of 2013 on MFIs, are that they aim to improve community access to micro-scale finance, increase economic empowerment and community productivity, and improve the incomes and well-being of the community, particularly the poor and/or income earners low. This study aims to analyze the effectiveness of microfinance institutions for beef cattle farmers in South Sulawesi. This research is a descriptive study conducted on several MFIs in Sinjai district. The questionnaire as a research tool was used to collect data while still referring to the Covid-19 prevention protocol in the community. Also, the FGD was carried out in compliance with the distance and the limited number of people and made known virtually through online seminars. Data analysis with descriptive statistics. The results showed that the existence of MFIs in rural areas was considered effective as breeders had easy access to finance without collateral, increased participation of MFI members and their involvement in various activities in rural areas, and increased livestock ownership and income generation of the breeders.