ABSTRACT
The goal of this study is to identify and examine Indonesia's financial inclusion index from the perspective of the microfinance institution business sector, as well as the obstacles, opportunities, and challenges that policymakers face in increasing the financial inclusion index, which has implications for improving people's welfare. Were compared using the research method of literature study. The descriptive qualitative technique employs an inductive processas an analytical tool.

Based on the research results; 1). Indonesia's financial inclusion index is still quite low, contributed by the microfinance institutions (MFI) sector. Community groups in Indonesia have not fully utilized official financial services, especially as the main source of cash and financing. In comparison to other business sectors, the MFI business sector only makes up 0.72% of the total. This demonstrates that MFIs, the cornerstone of the local economy, make up the least amount of the total. 2). The financial inclusion index in Indonesia is limited by the low contribution of financial literacy, which stands in the way of efforts to raise the index. Actually, it is anticipated that MFIs will strengthen the local economy. MFIs are small-scale funders, so it's critical to boost their involvement. On the other hand, microfinance provides low-income individuals, low-income groups, and microentrepreneurs with loans, deposits, money transfers, insurance, and payments.
Keywords: Index Financial Inclusion; Indonesia; Microfinance Institutions.