Islamic Microfinance Institutions and Women's Empowerment: Addressing Challenges and Prioritizing Solutions

Tika Widiastuti; Rahmat Yuliawan; Ika Yunia Fauzia; Anidah Robani; Muhammad  Ubaidillah; Febriana Wurjaningrum; Nikmatul Atiya

doi:10.61707/rfqe8506

Authors

Tika Widiastuti Faculty of Economic and Business, Universitas Airlangga, Indonesia
Rahmat Yuliawan Faculty of Economic and Business, Universitas Airlangga, Indonesia
Ika Yunia Fauzia Faculty of Economic and Business, Universitas Hayam Wuruk Perbanas, Indonesia
Anidah Robani Institute of Technology Management and Entrepreneurship, Universiti Teknikal Malaysia Melaka, Malaysia
Muhammad Ubaidillah Faculty of Creative Design and Digital Business, Development Studies, Sepuluh Nopember Institute of Technology, Indonesia
Febriana Wurjaningrum Faculty of Economic and Business, Universitas Airlangga, Indonesia
Nikmatul Atiya Faculty of Economic and Business, Universitas Airlangga, Indonesia

DOI:

https://doi.org/10.61707/rfqe8506

Keywords:

Women Empowerment, Islamic Microfinance, Challenges, Solutions, Indonesia

Abstract

This study analyzes the challenges in empowering women with Islamic Microfinance and formulates priority solutions. The challenge analysis was conducted on six aspects including: regulation, empowered women, Institutional Microfinance Institutions (IMFIs), IMFIs (programs), business, and finance. Employing a qualitative approach, this study utilized the Delphi Analytic Network Process (DANP) involving 12 experts from academia, practitioners, associations, and regulatory bodies. Three primary challenges in women's empowerment were identified: first, empowered women face challenges managing their time due to domestic and economic responsibilities (0.324); second, IMFIs have a limited outreach, resulting in constrained empowerment information (0.321); and third, women lack knowledge and skills to manage their finances. To address these issues, three priority solutions are proposed: first collaboration among IMFIs to offer mentoring (0.237); second, development of social programs by IMFIs (0.236); and third, provision of expert mentors by IMFIs.