Microfinance policy in Indonesia is more likely to follow the commercialisation path. It is believed that the for-profit focus of formal MFIs, such as microbanks) can be achieved in conjunction with increased outreach to the poor. However, there is no convincing evidence that the achievement of profitability goes hand-in-hand with the capacity to serve the poor. In this regard, this book argues the commercialisation of MFIs increases financial performance but reduces outreach to serve the poor in Indonesia. Previous research reveals the positive impacts of microfinance on the welfare of the...