Microfinance and Inequality: Case of Indonesia

Leo Indra Wardhana, Fani Pramuditya, Elton Buyung Satriyanto


This study investigates the role of microfinance from small-sized banks, usually with a limited geographical area of operation, in Indonesia, namely Bank Perkreditan Rakyat (BPR) on the income inequality. Using a province level panel data of 2012-2018 the results show that loans from such a bank are associated with income inequality reduction, supporting the arguments that microfinance contributes to income inequality reduction. This study has an important policy implication regarding the existence of BPR in Indonesia.


Microfinance; BPR; Income Inequality; Indonesia; Small-sized Banks

Full Text:


DOI: https://doi.org/10.29259/sijdeb.v4i3.211-228


  • There are currently no refbacks.

Sriwijaya International Journal of Dynamic Economics and Business
Jl. Srijaya Negara Gedung Fakultas Ekonomi Lt.3
Fakultas Ekonomi Universitas Sriwijaya
Bukit Besar, Palembang, Sumatera Selatan, Indonesia, 30139
Email: sijdeb@unsri.ac.id

p-ISSN: 2581-2904 | e-ISSN: 2581-2912

Creative Commons License
Sriwijaya International Journal of Dynamic Economics and Business by http://sijdeb.unsri.ac.id is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

View My Stats

 SIJDEB is Indexed by: 

Logo DOAJLogo Google Scholar UnsriLogo Google Scholar UnsriNeliti