Driving microfinance institutions roles to enhance coastal zone’s life

Coastal communities represent the majority of the world’s poor population. In Indonesia, the percentage of poor people in coastal areas reaches 11.02%. Most of them earn their living as fishermen, fish farmers, and various other small-scale businesses. To reduce poverty and improve their welfare, contributions from various institutions, including financial institutions, are needed. This research aims to explore the role of microfinance institutions in providing easy access to finance for coastal communities to help improve their welfare. To achieve this goal, researchers conducted action research in the northern coastal area of the island of Java, precisely in Mertasinga Village, Cirebon Regency. Data was obtained through observation and interviews. The research results show that microfinance institutions in the area are very popular with the community to support their economic activities. Substantially, the presence of microfinance institutions plays a significant role in the rural economy, namely to fulfil the community's need for financial institutions naturally. However, the role of microfinance institutions is still passive. Henceforward, the role of microfinance institutions needs to be increased by empowering them as sources of information on village economic activities for local governments and as formal financial institutions that are the lifeblood of the village economy, pointedly fishing communities.