FINANCIAL INCLUSION FOR WOMEN: Impact Evaluation of Islamic Microfinance on Women s Empowerment in Indonesia

Transcription

1 FORUM KAJIAN PEMBANGUNAN FINANCIAL INCLUSION FOR WOMEN: Impact Evaluation of Islamic Microfinance on Women s Empowerment in Indonesia Researcher: UMI KAROMAH YAUMIDIN PUTRI IRMA YANUARTI DIAH SETIARI SUHODO ACHSANAH HIDAYATINA September 24, 2014 ECONOMIC RESEARCH CENTRE INDONESIA INSTITUTE OF SCIENCES 1

2 BACKGROUND Declining number of poor but increasing inequality Utilization of social protection Reaching the unbendable microfinance Empowering Women 2

3 BACKGROUND BAZNAS COLLECTING FROM OFFICIAL GOVERNMENT STAFFS PUT MONEY INTO FORMAL FINANCIAL INSTITUTIONS GIVING TO NISBAH FOR CREDITORS WITHOUT ASSESMENT ZAKAT FUND WOMEN MICROFINANCE LAZNAS COLLECTING FROM OTHER COMMUNITIES CONDUCT COMPLICATED STAGES FROM RECRUITMENT PHASE, MENTORING PHASE UNTIL PREPARING FOR EXIT STRATEGY TO ALL THE GROUP OF WOMEN 3

4 BACKGROUND the distribution of zakat for economically productive programs has been sporadic, inconsistent, subjective, and without coordination and comprehensive planning between zakat institutions and local governments. Islamic lesson mixed by secularism that somehow makes women disempowerment, meanwhile the rules of classical Islamic law could leave a woman financially better off 4

5 OBJECTIVE Determine women understanding on women empowerments Measuring the impact of Islamic microfinance Comparing the performance of Islamic microfinance 5

6 METHODS LOCATION - INITIATION OF ZAKAH UTILIZATION CAN BE USED FOR PRODUCTIVE ACTIVITIES - CHARACTERISTIC OF ETHNIC - MATURE (Metropolitan) AND HIGHLY INOVATIVE CITY. - PROPORTIONAL NUMBER OF POOR WOMEN 6

7 METHODS Methodological framework - quasi-experimental framework treatment and Control Group. - Exploratory approach FGD economic and education level women empowerment 7

8 METHODS MFI Sample design TOTAL RESPON DENT TREATM ENT CONTRO L BAZNAS LAZNAS TOTAL TREATMENT GROUP = > 1 YEARS AS MEMBER OF MFI CONTROL GROUP = < 1 YEAR ASSUME: SIMILAR TYPES OF COMMUNITIES AND CHARACTERISTIC S Questionaire design A. Household Information (Adult) B. Household Information (Children) C. Household Information (Labor) D. Credit profile of household E. Income/Expenditure/Saving/ Debt/Asset Profile of HH F. Female Enterprise G. Attitude towards female enterprise /empowerment 8

9 HYPHOTESES Hypotheses 1: MFI have impact to preference based indicators of empowerment Hypotheses 2 : MFI have impact to autonomy based indicators of empowerment 1.1 Child Related Decisions 1.2 Health Related Decisions 1.3 Economic Decisions 1.4 Social Mobility Decisions 1.5 Resource Allocation Dec Making Small Household Purchases. 2.2 Child Related Decisions. 9

10 Method of data analysis C i is the binary treatment measuring participation X i is a vector of household and borrower's characteristics (age, education, children etc.), Y i is the conditional demand for women's empowerment outcomes Z i is the set of exogenous instruments To estimates and test hypothesis we use probit and bivariate probit models. Prospensity Score Matching to ensure conditional probability of participation in the program is uniform between participants and matched comparators. 10

11 Expected outcome Having standard measurement of women empowerment Improve performance indicator of Islamic Microfinance Building capacity to women to be more actively in economic Policy recommendation to the stakeholders 11

12 Preliminary Findings CURRENT PROGRESS: CONDUCT FGD WITH : 1. WOMEN (2 TIMES, DIFFERENT GROUP BASED ON EDUCATION AND ECONOMIC LEVEL) 2. MANAGEMENT BOARD OF MFI SPREADING QUESTIONNAIRE: 68 RESPONDENT 12

13 Preliminary Findings Formed of Microfinance in Indonesia Number of Bank Number of Worker Total Financing (Credit) Note BPR Syariah 160 4,826 4,354,183 Oct BPR Conventional 1,634 74,531,494 Oct Cooperative 203, ,541 8,118,959 Oct.2013 Conventional Cooperative Syariah 3, , Sources: Bank of Indonesia, 2013 and Ministry of Cooperative and SMEs,

14 Preliminary Findings RECRUITME progress NT STAGE I Survey Sosialization and STAGE II Introducing program to new member Filling out formulir STAGE III Interview candidate Commitee meeting Annoucement group formation MENTORING NEW MEMBER: SAVING, MUAMALA, ROBANNIAH HAOUSEHOLDS MATURE MEMBER: ENTREPRENEURSHIP, FINANCIAL MANAJERIAL LEADER MEMBER: MANAGEMENT ORGANIZATION, LEADERSHIF, AND FIQH OF ZAKAT UTILIZATION FUNDING FIRST STEP PATERN BREAK 2 WEEKS 2 PAYMENT LOANS SECOND STEP PATERN BREAK 2 WEEKS 2 PAYMENT LOANS THIRD STEP PATERN BREAK 2 WEEKS 2 PAYMENT LOANS 14

15 Preliminary Findings Women empowerment definition Middle level 1. Equality between man and women if only if women have charismatic (sex appeal, loyality, participate to earn money, high education, etc) 2. Husband money is his wife money, but money that earn by herself is going to her own money. Lower level 1. Tend to fear to share their opinion without their husband permission. 2. Tend to have a problem with their mother in law 3. Could not clearly define what empowerment is, they only know about women emancipation. 15

16 Islamic microfinance and women THANK YOU TERIMA KASIH MARAMING SALAMAT empowerment 16