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 456 micro-entrepreneurs in around 90 groups, with around 60 % women. The target is to serve 2,000 clients by the end of 2008 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, up to 20% per month from loan sharks!

Invitation

Five Talents plans to raise £30,000 in 2008 towards this programme. The Anglican Diocese of Singapore and local donors in Jakarta have also combined to support this programme (£15,000).

More Information

To see the latest report (2007/2008, pdf) on activity in this project click here.

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