ROLE OF MICRO FINANCIAL INSTITUTIONS FOR FARMERS AND MEDIUM SMALL BUSINESSES SUPPORT MIFEE

MFI is one of the financial institutions to finance rural economic activities where the majority of the enterprises are in micro or SME segments. Some of the participating villages of PUAP SME programs are generally engaged in agriculture, livestock, and trading of agricultural products. MIFEE sees Indonesia's economic development opportunities through MP3EI. Research objectives: recommendation of the role of MFIs or SMEs in developing a business. Outcome: there are 12 MFIs and 323 SMEs in Merauke, 20 percent are agricultural SMEs that act as capital providers for SMEs and increase farmers' capital. In order for the role of MFIs to be sustainable and increasing, it is necessary to coordinate with Dinas Perindagkop as institutional coach of MFIs with MIFEE related programs. Coordination needs to be done also cooperatives, banks, and colleges to find solutions to capital problems. It is necessary to find an effort to introduce the role of MFIs in assisting farmers or users of other R & D outcomes, in particular leading to reform of MFIs already established in previous programs, such as PUAP and MIFEE