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| Community Micro Credit Cooperative (KSU) |
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| How the ‘Sari Tunggal Sedana’ Micro Credit Cooperative began |
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| Many of the micro / small scale entrepreneurs on Bali have been victimized by mafia loan shark systems, which take advantage of people’s low levels of education and lack of economic understanding. This occurs in most areas of Bali, as well as Indonesian-wide.
The KSU (Koperasi Serba Usaha) Cooperative was established in 2003 through a generous grant from the Seminyak Bali Rotary Chapter and with additional support from a local women’s organization, Bali Jani. Its primary goal was to offer local women access to small loans at low interest rates, providing an alternative to the loan sharks who frequently take advantage of those who have limited access to credit resources.
The micro loan systems used by the KSU are simple and do not require complicated application procedures. The success of the KSU is supported by the regular (generally weekly) collection of small and reasonable loan payments. In addition to this, the cooperative also sells basic goods to the local community at reduced rates.
This program is run by enthusiastic and motivated local staff, who manage all project development and reporting to IDEP and local government. The cooperative has the full cooperation and support of the local PKK (women’s community association). The combination of marginalized poor and more economically developed people in this area provide an opportunity to strengthen the cooperatives assets and scope, while demonstrating community driven solutions to community based problems.
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| KSU ‘Sari Tunggal Sedana’ ‘s financial success: |
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| 6 months after its establishment, the KSU was able to cover all its running costs including overheads and salaries for three full time staff. In total, over 151 loans were processed, with 97 of these falling within the mandate of the IDEP / Rotary micro loan fund criteria of being valued below Rp 500,000.
Through this IDEP / Rotary micro loan revolving fund, the total value disbursed to the local community within the first 6 months was Rp 43,050,000.
An overview of financial status of the revolving fund is as follows. For details of individual micro loan recipients and their loan status see Attachment A – KSU TST Loan Details:
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micro Loans |
member |
admin & |
| month |
Disbursed |
savings |
interest |
| February |
6,900,000 |
69,000 |
620,000 |
| March |
4,100,000 |
41,000 |
410,000 |
| April |
9,550,000 |
95,500 |
985,000 |
| May |
12,100,000 |
120,000 |
1,200,000 |
| June |
10,400,000 |
102,000 |
1,040,000 |
| Totals to date: |
43,050,000 |
427,500 |
4,255,000 |
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Total Micro loan re-payments to KSU to date : 34,907,500
Revolving fund currently has cash asset for ongoing loans of : 7,285,000 |
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| The KSU ‘Sari Tunggal Sedana’ needs |
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| This success of this cooperative is such that the staff now need additional support to manage the administrative responsibilities involved in the monitoring of the program. Funding is needed to purchase a basic computer for the cooperative and to finance the on-going technical training of the staff.
IDEP also intends to further strengthen the scope and impact of the cooperative within the local community by developing and designing some simple waste management programs within the cooperatives networks.
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| We are currently seeking support for the following initiatives: |
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| 1. A training program for cooperative staff capacity building
2. A more manageable and appropriate administration system
3. A basic computer and a printer to be used by the cooperative staff
4. The production of cloth bags for cooperative members to reduce/replace plastic usage.
5. Production of educational materials about waste management for display at the coop
6. The construction of a communal recycling bin at the cooperative for the local community to deposit their plastic and paper wastes
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| If you are interested in supporting this excellent example of successful micro credit activities on the ground, please contact us for more details. If you are ready to pledge your support now, please go to our donations page. |
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