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Ali Sakti
Zaäfri Ananto Husodo


In the latest developments in microfinance practice, the dominance of the interests of microfinance institutions that focus on achieving financial sustainability (commercial orientation) allows the tendency for microfinance to shift its genuine mission away from social orientation. Therefore, this research aimed to fill the gap in the study of financial intermediation with respect to the orientation of microfinance, particularly the orientation of Islamic Microfinance. The main objective of this paper is to find the dominant orientation of Islamic microfinance institutions in serving the poor and micro/small enterprises by using a group-lending approach. Based on the objective, this research intended to analyse the decision-making process undertaken by Islamic microfinance institutions in conducting group lending. The practice of microfinance has complexity in the relationships among the causal and mediating factors as well as random environmental noise, which causes difficulties in determining the parameters for both that which is intangible and immeasurable. Taking those conditions into consideration, this study selected the Delphi and analytic network process (ANP) approaches as its methodology. In general, the social orientation of Islamic microfinance in group-lending strategy still exists. The most important factors that affect the social orientation of group-lending practice are the objective and impact aspects

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