Indonesia
Background
The GERHATI Foundation was officially launched in July 2005. It is a micro-enterprise development programme based in Jakarta, created by All Saints Church, Jakarta, with support from the Diocese of Singapore and Five Talents. Within two years the Foundation has provided start-up loans to 723 micro-entrepreneurs in around 140 groups, with around 60 % women. The target is to serve 2,000 clients by the end of 2010 in some of the poorest areas of Jakarta. This is the break-even point where all costs for operations will be recovered by interest from the revolving loans, making the project self-sustainable thereafter.
Johannes
Johannes is a member of the Cempaka Sejahtera (“Tree of Prosperity”) loan group. A few years ago Johannes escaped the war in E.Timor and made his way to Berkasi, east of Jakarta. He started a button-selling business. With a loan of 500,000 Rupiah (£45) from the Gerhati Foundation (Five Talents’ partner) he also bought zips which sold out quickly. He is now on his second loan (this time £55) to further expand the business which now employs 4 people.
Community Description
The GERHATI programme is focusing on two poor suburban communities in Jakarta: Berkasi and Cipayung. The majority of the recipients are women at the lowest income levels. They are also mainly Muslim clients (98%) who are pleased to receive quality microfinance services from a trusted local operation, GERHATI. The programme provides the financial and technical assistance (mentoring and supervision) necessary to help participants maintain and develop their businesses.
Project Description
GERHATI operate the group-lending model offering small loans to the poor entrepreneurs in the community. The average individual loan is around £60. The loan period is 5 months at 2.5 percent interest per month. This compares with much higher rates by other credit cooperatives, and up to 20% per month from loan sharks!
Invitation
Five Talents plans to raise £22,000 in 2010 towards this programme. The Anglican Diocese of Singapore and local donors in Jakarta have also combined to support this programme (£15,000).
More Information
Click here to read the latest programme summary on this project.
Click here to read case studies from this country and other countries.
To read Rachel's trip report from November 2008, click here.