HI there all

I live in W. Australia and have been coming to Indonesia since 2004.

I have many friends in Indonesia, mostly in Java and Sumatra. I have some small business interests in Java, but I have founded a not for profit organisation in those provinci, called Bamboo Foundation.

This provides no-interest loans to poor people to start their own business. It is based in Bukittinggi W. Sumatra and Bandung W.Java.

I administer it from Australia, in conjunction with an agency of which I am a Director, namely Extra Edfge Community Services. We have local coordinators in each location and manage the finances locallt.

I am aware that micro credit is not a new phonomenon, but Bamboo is unique in that it provides credit at no interest to borrowers, with flexibility of repayments.

I would appreciate any commments.

Primarily by knowing the people in the community (I have managers who live and work in the local area), by ensuring potential borrowers are carefully assessed (their proposed business activity also) and by making sure they know that if they do not repay, someone else (probably a neighbour) will not get a loan.

This has worked well so far and while we are flexible about repayments, most loans so far are being repaid far faster than I had originally thought they might be. I get monthly reports of loans granted and repayments. This experience is common in microcredit organisations in other parts of the world. Most poor people are so grateful to get credit and decent terms that they want to repay the loan!

Thanks for your interest.

TidakMasalah said:

Sounds like a great idea.  I've been looking for ways to help out a little over there.  This might be just the type of thing.

We would be delighted if you were to contribute, no matter how small the amount.

We can guarantee that all donations are fully used for loans, as the cost of administration of the Foundation is already covered from Australia.

Where are you now….in Indonesia?

Hi Folks

Indeed, microcredit is not a new thing.  You might want to have a chat with the PKK office as well as one of the local banks dealing in microcredit in your areas, to get a picture of what is already happening.  A read of Muhammad Yunus' book 'Banker to the Poor' will also give you an insight into how microfinance works – it's not just about providing money.  The social organisation, discipline of repayment and the capacity building process within communities are equally, if not more, important.

I wouldn't want to discourage you, but microcredit requires a long term commitment, a subsidised line of credit and the growing of local networks and parallel businesses to be successful.  You are going to be competing with esablished operations.  If you undercut them, it could be counter productive for long term microfinance services in the area, or conversely you might end up with all the riskiest loans (i.e. the ones that other providers wouldn't touch), and your business will be unsustainable.

yep, i remember reading about Muhammad Yunus in the newstatesman.  he started off with his microcredit project in bangladesh, and most of the small loans were given out to women.  they were much more responsible and used the money for setting up small businesses.

it's nice to hear about credit schemes like these, helping out those people who need it most.  look at the major world banks, and the mess that they are in, all because of their pursuit of making more money, without ever contributing anything beneficial to communities and society

euler09 said:

What is your objective for this non-profit small business? Helping people? Why would you wanna do that? I am just curious.

Quite simple, because I can, because it benefits those who, in my opinion most need it and because it gives me considerable satisfaction to see a worthwhile project succeed. It also allows me to have contact with many people in Indonesia, whom I would never meet as a foreigner.

I'm happy to answer any other questions you have and I hope this brief reply is satisfactory for you….I could go on ad finitum, but wont!