ROLE OF MICROFINANCE INSTITUTIONS ON ECONOMIC DEVELOPMENT OF BANDA ACEH JOINING ASEAN ECONOMIC COMMUNITY

Abstract

Small scale businesses has big contribution to provide job field and absorb a lot of workers. Micro, small, and medium scale enterprises (SMEs) and cooperatives have a big contribution to make Indonesian’s economic become suistainable in ASEAN Economic Community (AEC) era. There are so many efforting that done by stakeholders to improve the ability of micro, small, medium scale enterprises and cooperative. Government, banks, corporations, donors institutions has regulated about mechanism of operating of micro, small, medium scale
enterprises and cooperative. Microfinance Institutions as intermediatary agency is built to supervise and aid micro, small, medium scale enterprises. Several variables show that the development of micro, small, medium scale enterprises and cooperative that can generate economic growth such as: the achievement of the target group, capital, capacity building, and the problem. The study’s result show that the descriptive analysis of the various policy and action have been made by various stakeholders that doesn’t show maximum progrest
for development Microfinance Institutionas as intermediatary agent for micro, small, and medium enterprises (SMEs).