Micro Economic Development
DIMAN currently uses the Trust Bank methodology for group lending,
which is documented in the SOP (Standard Operating Procedure) manuals.
Thus, when a potential client contacts them to form a group, or when
they investigate a new area in which to start a TRUST BANK group,
DIMAN's staff will follow the SOP practices from the beginning process
until the end.
Principal and interest repayments are
collected weekly. A small additional amount ( minimum of Rp 1000) is
collected by the group to provide additional funds for group activities.
DIMAN
also provides graduation program for the clients who need bigger loan
size. The programs are called Small Group and Individual Loans. Through
this program, prospective clients can expand their business more
rapidly.
DIMAN provides both compulsory training to its
clients concerning such things as simple bookkeeping, group formation
and optional training in areas such as health care and nutrition as
requested by the clients.
The significant quality of life
improvement is shown in the lives of DIMAN's clients. With their
increasing income they can provide nutritious food for their children
and buy appropriate clothes. It is not a change of the community life
style but more as a transformation and awareness on how to live in a
healthy way. The other effect of DIMANs program is that now the people
are free from the moneylenders and have the ability to develop their
businesses properly.
DIMAN particularly aim to assist women who are a majority of our
clients. The TRUST BANK program has successfully motivated the local
women to also help their husband in improving their family welfare. To
support their business and social development, the small local
entrepreneurs have been provisioned with training and lecture. The
training materials consist of simple bookkeeping, basic business
management and health education (diarrhea) . DIMAN also provide the
client other training such as making cake, hairdresser, making soap
(detergent), making soybean milk, etc.
Payung Keluarga - Micro Insurance
"Payung Keluarga" provides two essential benefits for these credit
customers. First of all, the outstanding balance of the credit is
waived in the event of death of the loan taker. So the family will not
be burdened with paying back the loan. Secondly, the family receives
two times the original loan amount as an additional benefit. This
additional benefit helps the low income family to overcome the crisis
after the death of the breadwinner. The premiums will be paid as single
premium by the credit customers upon loan disbursement.
Community Development Programs
In addition to the above multiplier effect, there will be indirect
benefits though the development of local leaders; empowered by the
training and information they receive through DIMAN. Improvements in
the local economy and standards of living will also take place. The
community will also benefit directly from information evenings
organised by DIMAN as part of its MED methodology.
Much effort has been made by DIMAN in the area of community
development, such as training on health, made possible through the
routine weekly meetings. DIMAN is also considering the implementation
of community development programs with future funding.
The effectiveness of the MED programs to improve the quality of people
living in Tangerang can be enhanced by the provision of projects such
as Village Road Improvements, Clean Water Supply and Better Sanitation.
Similarly, the provision of community development projects to meet the
needs of the people living in the coastal area, including access to Ice
Blocks to keep their produce fresh, will improve the business and
living conditions of those involved in the program.
Although no formal development programs have been conducted by DIMAN at
this time, several community needs have been identified in areas which
have been surveyed. The studies showed that: 28% of respondents need
Clean Water; 19% said they need Puskesmas (Community Health Centre);
while the need for a Posyandu (Integrated Health Services Post -
smaller than Puskesmas) was noted by 7%. Better sanitation is required
by one quarter of those surveyed, and clean toilets are needed by 27%
of the respondents. The most commonly expressed need (41% of the
respondents) was for Village Road Improvements, eg to permit the more
isolated people to access markets.
