<![CDATA[Purpose – This study analyzes the scope dimension (service diversity) of outreach within group-based Islamic Microfinance Institutions (IMFIs) in Indonesia. Utilizing the group lending model, this study aims to assess how institutional adaptation and group mechanisms influence outreach scope and sustainability in the post-COVID-19 period.Methodology – An exploratory multiple-case study was conducted using documentary data from 11 Islamic microfinance institutions (IMFIs) and interviews/FGDs with practitioners from 16 group-based ones. Documentary sources included institutional reports, websites, and product publications, whereas primary data were obtained from managers, supervisors, and field officers. The data were analyzed to examine the outreach scope, group lending mechanisms, and their implications for outreach sustainability.Findings – The results show a structural asymmetry, and large IMFIs exhibit comprehensive diversification, enhancing resilience. Smaller IMFIs are product-constrained because of structural and regulatory vulnerabilities (e.g., BWM's deposit restriction). Furthermore, while the group lending model ensures outreach breadth, the weakening of peer monitoring and flexibilization of joint liability have shifted reliance to administrative enforcement. This erosion of social capital, evidenced by consumption-oriented borrowing, demonstrates the gap between financial access and genuine economic empowerment.Implications – The findings necessitate regulatory reform to support smaller IMFIs in service diversification and a critical need for institutions to restore the social accountability foundations of the group model to ensure a transformative impact.Originality – This research extends the microfinance literature by detailing the scope of Indonesian Islamic finance, offering novel empirical insights into the balance between operational flexibility and social cohesion required for sustainable post-crisis outreach.]]>
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