Impact of the Covid-19 Pandemic on Micro Finance Income

Abstract

The purpose of this study was to examine the impact of the COVID-19 pandemic on the income of microfinance institutions (MFIs) in Indonesia. Using a sample of 181 microfinance institutions using financial report data for 2017–2019 (before the pandemic) and 2020–2021 (during the pandemic). Data were analyzed using a non-parametric test (Wilcoxon signed ranks test). The results show that all elements of income (interest income, fee, and commission income, operating income, and non-operational income) decreased significantly. On the other side of the impact of the COVID-19 pandemic on expenses, several elements of expenses have decreased significantly (interest expense, depreciation, and amortization expense, marketing expense, administration, and general expense, operational expense, and non-operational expense). As for fee and commission expenses, research and development expenses, and an impairment charge on loans, they decrease insignificantly.