Abstract:
This study aim to identify the Instruments of Government Policy to organize channeling
Local Government funds to Microfinance Finance Institutions. Type of the research is
qualitative research. Simultaneous process occurs for data collection, presentation,
reduction, and conclusions, results and findings of the research. To support the research, the data required in this case is the primary and secondary data. The primary data collected from interviews activities among Bank and Non Bank Microfinance Institutions Banks, Secondary data collected from various documentation about policy issued and implemented by the Local Government to strengthen the Bank and Non-Bank Microfinance Institutions by distribution of funds. The results shows that 98.4% have not been reached by the Cooperative Strengthening policy conducted by the Bandung Local Government. Existing policies are still far from effective judging from the number of funds that had heen disbursed and the number of recipients of the Non-Bank Microfinance Institutions. Problems of Non-Bank Microfinance Institutions in Bandung can be categorized into 5 major constraints, marketing network, lack of infrastructure
support, capital, managerial competence and technnlogical backwardness.
