Financial Aid Insufficient, FEB Unpad Re-Introduce Strategies to Reduce Poverty

Bandung, West Java – The Faculty of Economy and Business at Universitas Padjadjaran held an international conference titled International Conference Integrated Microfinance Management (IMM) for Sustainable Community Development in the Iwa Koesoemasoemantri Campus, Jl. Dipati Ukur No. 35 Bandung on 20-21 September. This conference, fully supported by the Faculty of Humanities and other faculties, had speakers with expertise in the IMM field, one of whom was Dr. (H.C.) Martha Tilaar, founder of Martha Tilaar Group.

Dr. Adiatma Y. M. Siregar, the conference chairperson, says this event was held to introduce the concept of integrated Microfinance Management (IMM) to the wider community, as well as to record IMM activities in Indonesia.

“We want to introduce the concept of Integrated Microfinance Management to the general public, including, practitioners, the government, and academics. This is because the concept is not widely known to people, even though it has been applied many times — they are just not inventoried well enough,” says Adiatma.

Other than expressing the purpose of the conference, Adiatma adds that IMM is one of the actions that will go beyond providing financial aid. He believes that financial aid is not enough to break the chain of poverty in society. This is also inseparable from various other factors that need to be considered, such as health, education, culture, and local knowledge.

In line with Adiatma’s opinion, financial aid should go hand in hand with community empowerment efforts. This aims to improve the quality of education and health that emerges from the local culture.

“The point is, it’s not only about distributing money, but how that money can be used well,” he says.

Although the knowledge and concept of IMM is relatively new to the public, there are many similar approaches in Indonesia. Adiatma explains these cases, such as the one that happened in Kampung Adat Cireundeu, Cimahi.

“So, actually, the concept is maybe not well-known as an academic concept, but there are many implementations of it,” He adds.

This international conference held by the Faculty of Economy and Business at Universitas PadjadjaranPadjadajran received positive feedback from various groups. This is shown by the 150 participants from different occupational backgrounds, such as academics, government officials, and practitioners. Not only that, but the participants also came from various countries, such as Indonesia, Malaysia, Tanzania, and the Netherlands. Additionally, as many as forty papers were presented at this international conference.

Through this event, Adiatma reemphasizes that the process of eradicating poverty merely through financial aid will not be enough. It needs to be supported by an empowerment process, so it can create a community that has capacity and is ultimately free from poverty.

“When people are given financial aid, they will not necessarily get out of poverty, if you do not consider other factors, such as health, education, culture, and local knowledge that they already have,” he says.

Writer: Maria Imanuella Dewi Sekartaji
Translator: Jauza Maryam Mumtazah