Abstract



The government's desire to reduce poverty, among others, implemented through financial inclusion movement that has long proclaimed and received International Recognition for achievements developing financial inclusion (2012) in order to reduce poverty, unemployment and prevent a widening gap between the poor and the rich population. By using the object of study of Islamic Microfinance Institutions in Indonesia, especially Sharia Rural Bank, Islamic Banks and Sharia Business Unit, investigated the effect of the provision of financing based Qardh, and special financing for micro and small enterprises. Qardh type of financing, aimed at the poor, without collateral, and without any compensation whose purpose is to virtue, while micro and small business financing, also intended for the poor, without collateral and with the principle of sharing. This financing, is in order to develop the business, providing guidance and support entrepreneurship promotion. Secondary data were collected from Indonesian Islamic Banking Statistics (2013), and Indonesia’ Central Bureau of Statistics. With descriptive causality research design, as well as a fitted regression technique, the result showed the Financial Inclusion through financing Qardh have no effect on increasing Household income, and then of course have no impact to reducing poverty. While the Financial Inclusion through Financing Micro and Small business, affect the development of MSEs (institutional and labor), MSEs’ Entrepreneurship (promotion and empowerment) and Poverty Alleviation, both through reducing poverty and increasing household income.