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Microfinance Innovation Center For Resources and Alternatives

Group Lending: The Implementation in Rural Banks in Indonesia

The study of group lending in BPRs involved two financial institutions, namely Arta Kencana (AK) in Madiun and Kebo Mas (KM) in Gresik. Utilizing individual group lending clients as units of analysis, the study administered the BPR Group Lending Survey on a total of 211 group lending clients. In addition, BPR management, partners, community leaders, and both drop-out as well as active clients were interviewed for qualitative input.

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Promoting Female Migrant Workers’ Access to Finance through the PNPM

In 2006, the Manpower and Transmigration Ministry, reported 696,746 legally registered Indonesia migrant workers overseas, with official remittances recorded at USD 5.9 billion in 2007. Experts agreed that official statistics significantly underestimate both migration and remittances, linked to reporting weaknesses and significant flows of undocumented migration, particularly to Malaysia, as well as the persistent use of informal channels for the transfer of earnings abroad. It is clear, however, that the numbers are increasing annually and will continue to do so, with stronger support from the Indonesian government for migrant workers and ongoing high unemployment and underemployment levels.

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Indonesia Fisheries Revitalization Project Credit Guarantee Program: Short Review and Recommendation

The Government of Indonesia's Directorate General for Aquaculture (DGA) of the Ministry of Marine Affairs and Fisheries (MMAF) has requested World Bank support to (a) add “fresh money” into the financial system in order to bolster their collateralized credit scheme for aqua farmer groups (AFG) and (b) finance a supporting mechanism (such as a guarantee facility) to leverage four times the financial flows to support small scale loans to aqua farmers

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Rapid Evaluation Report on Government Community Development Operations: Microfinance and Microcredit

The Government of Indonesia (GoI) through Badan Perencanaan Pembangunan Nasional (Bappenas) has commissioned a series of independent evaluations to examine the effectiveness of ongoing government poverty reduction programs, focusing on the community level. Bappenas has identified 14 large community development programs implemented by ten different ministries to be evaluated in 2007. From these programs, five are categorized as microfinance/ microcredit programs. These programs are:

  1. KUBE (Kelompok Usaha Bersama/Program Pemberdayaan Masyarakat Miskin) - Ministry for Social Affairs
  2. PEMP (Program Pemberdayaan Ekonomi Masyarakat Pesisir) - Ministry of Marine Affairs and Fisheries
  3. P4K (Proyek Peningkatan Pendapatan Petani dan Nelayan Kecil) - Ministry of Agriculture
  4. BLM-KIP (Bantuan Langsung Masyarakat—Keringanan Investasi Pertanian) - Ministry of Agriculture
  5. Penyediaan Dana Bergulir untuk Kegiatan Produktif Skala Usaha Mikro dengan Pola Bagi Hasil/Syariah dan Konvensional - Ministry of Cooperatives and SMEs

These programs were chosen because they: (a) relate to community development; (b) target primarily the kecamatan and village levels (as opposed to national, provincial, or district levels); and (c) are significant in terms of government funding levels.

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