The Role of Activity Management Units in Optimizing the Women’s Savings and Loans Program to Improve Community Welfare and the Local Economy

This study explores the role of the Activity Management Unit (UPK) in optimizing the Women’s Savings and Loans Program (SPP) to improve community welfare and local economic resilience in Dendang Subdistrict. Rooted in concerns over rural poverty and income inequality, the research investigates how UPK facilitates access to financial resources for women while fostering participation and institutional trust. Using a qualitative case study approach, data were collected through in-depth interviews, direct observations, and analysis of official documents to capture the contextual dynamics of the program. The findings reveal that UPK plays a multifaceted role as a financial manager, community facilitator, and institutional actor. Women participants reported improved access to capital, increased confidence in managing household and business finances, and strengthened social cohesion within loan groups. The study also identifies operational challenges, including limited digital infrastructure and generational gaps in participation. By drawing on empowerment theory and social organization frameworks, the research demonstrates that UPK’s participatory structure enhances women’s agency and reinforces collective development. The implications of this study offer valuable insights for strengthening grassroots financial initiatives and shaping gender-responsive policies in rural development contexts.