FROM MICROFINANCE TO ‘‘GINTINGAN’’: REINVENTING LOCAL INSTITUTIONS FOR POVERTY REDUCTION IN INDONESIA

Previous research has demonstrated that microfinance is in fact perpetuating property. This may due to the fact that microfinance program has often overlooked people voices in the community. This paper demonstrates the extent to which people voices are important instruments for reducing poverty without necessarily relying to microfinance institution. This paper is drawn from an ethnoscience perspective in which the theory believes that local people have an agency to solve their problem. Using literature reviews, this paper focuses on the practice of local institution of ‘Gintingan'. The result suggests that ‘Gintingan' has contributed to the Sustainable Community Development in the rural area. The finding hence proves the roles local institution can play in reducing poverty in a community level.