Sea Village Microfinance Project
Sea Village Microfinance Project
Yayasan Sosial Bina Sejahtera had dialogue with key persons in the area and were told a government bank had given soft loans to the people but the program was not well planed and the people used the money for their daily needs and after a few months were unable to pay the monthly installments and the whole sub region was put on a black list and no one there could get banking access to credit.
The result of the dialogue was there would be no “cash” loans but the participants would receive goats and ducks. Twenty five families would be selected and given a packet of 5 goats – 4 females and one male – and 15 ducks to each family.
Why goats – YSBS’s number one key person had goats out with a number of people and this proved successful – but when his wife got cervical cancer – he had to sell the goats to pay for chemo – therapy etc. so some of the families to be helped had empty goat pens and only needed some bamboo to repair the pens. We sent them a truck load of bamboo to make new pens and repair old ones.
Even though there would be a male goat in each pen – they would buy goats that were already pregnant so there would be produce from 4 to 8 kids per year and two goats would be returned to us every year to be redistributed to others wanting to join the program. The cost of 5 goats would be Rp 5,000,000 (Euros 350).
The cost of 15 ducks would be Rp 1,000,000 (Euros 70). Why ducks – one of the big problems in the rice fields is the golden snail – ideal duck food – and by putting a leaf of the Papaya Tree on the walkways between the rice fields they can collect a half bucket of snails – these are crushed and mixed with rice pollard and kangkung – a leaf vegetable that grows in wetlands and these three ingredients provide all a duck needs to lay eggs – after harvest – the ducks can forage in the rice fields picking up fallen grain, small fish, etc.
Each farmer would open a bank account and three eggs per day given back to our key person who pays Rp 4,500 for the three eggs and these funds would be put into the bank accounts of each participant when they needed money to buy seed and fertilizer they could take out some of their money to buy these and on harvesting pay back in this money and this would free them from the loan sharks who charge 100% interest for a four month loan.
At the end of one year each farmer would have paid in Rp 4,500 x 365 or Rp 1,642,500 and pay back the Rp 1,000,000 for the 15 ducks and we help a further 25 families.
They have already bought and distributed the 375 ducks and the bank staff were present for this and all the participants opened a bank account and the farmers see this as a project of the peoples bank Ukabima Sejahtera and bank staff will collect payments etc. The peoples bank can be sent repayments via a government bank + 10 kms from the project site.
There are some initial photos of the duck part of the project. This is seen as a project of the bank and you see the bank staff in the photos. The key person shows how to use the machine for grinding the snails – mixing, etc.
After distributing the ducks and the participants opened saving accounts – we went on to the second phase – “goats” but “goats” here cover sheep as well. The Government authority for Financial Services and on the Bank invitation the head of the Department and staff come along and explained banking procedures to + 100 people who were present. The head man was very impressed and stayed for all the proceedings and said such an effort was what he was waiting for all these years to take up the challenge in remote, poor, farming areas.
The goats had arrived at the village. Photos of the activity, seven sheep have already lamed (babies).
On September 2017, there were 375 or 15 ducks each for 25 families, who opened accounts at the bank and 3 eggs per day sold, to go into these accounts so that when they needed money for rice seeds, etc. they could take out this money rather than get a loan from loan sharks repaying interest of 100%. The ducks cost + Rp 1,000,000 for 15. A second benefit was the ducks eat golden snails which are a pest for rice farmers but high in protein for ducks. They only need to add rice pollard/bran and greens readily available for a cheap source of duck feed.
Malnutrition and stunted growth in children affect 30% of children here so the eggs were a welcome addition to their diet and some were sold and salted to add to family earnings.
Each of 25 families got 4 sheep/goats female and one male – costing Rp 5,000,000 per family hence 100 female goats and 25 male sheep goats. I sent you photos of the handover with the Bank Staff and the head of the Authority of Micro Banking from the regional office of Bank Indonesia charged with the task of overcoming “Loan Sharks” and they are very happy with our efforts in this.
The 100 female sheep/goats produces + 50 offspring – some having three, some two and some one. All the ones having 3 lost one as the mother did not have enough milk for three. Eventually the progeny alive was 120 and 60 of these returned to us and redistributed to 12 more families and now there are 37 families in the program.
As Friday Sept 1st is the Islam Feats of Sacrifice – Idul Adha – male sheep/goats price are a premium and the program had 15 male goats ready and sold for Rp 2,500,000 each i.e. Rp 37,500,000 and this was able to help two families in the program whose houses were falling apart with Rp 15,000,000 and Rp 8,000,000 soft loans.
Some photos captured on September 2017