INDONESIA MICROFINANCE ACTIVITY

The microfinance sector in Indonesia is one of the largest in the world with over 50,000 microfinance institutions (MFIs), some in existence over 100 years. However, nearly 40 million low-income people in Indonesia still lack access to financial services and over 70% live on under $1 per day. The majority of MFIs in Indonesia are characterized by low growth in outreach and inefficient systems, citing lack of access to affordable capital as their main constraint. There is vast potential for growth in the sector if key inputs can be effectively provided on a wide scale in Indonesia.

1. BACKGROUND

The poor people and specially women do not have access to credit from the bank or other sources of finances. The poor need the institution (Micro) that they can get access, without guarantee and the program build the program. The program must serve to poor family, specially the poor women. The management must implement professional operational and administration systems with international standards (CGAP). Now, in Indonesia have more Mfi institution but they didn't manage with serious institution. More of them just for project oriented and owners or have not experience in micro credit activity.

Yayasan Mitra Dhuafa (YAMIDA) being the sustainability institution and serious management to serve the poor women with grameen bank. YAMIDA established in 2004 but all of senior staff have more experience in microfinance system since 1997 Yayasan Mitra Dhuafa (YAMIDA) is an Institution active the field of activities to empower poor community through special micro financing for women as of Grameen Bank System.

The establishment of this institute is based on the ideal about the significant of the empowerment of poor communities specially the women through development of the Professional and sustainable of financial program

2. VISION

To Development YAMIDA as a Microfinance Insitution of Professional and sustainable micro financial entity

3. MISSION

To develop YAMIDA into a micro financial entity capable to move the economy of poor communities based of fair, transparent an sustainable principle.

4. LEGAL BASIS

In the first time, YAMIDA have the program with license in foundation, after 2007, all of the microfinance program manage by Koperasi MITRA DHUAFA

5. YAMIDA'S PROGRAM

6. Microfinance with the Grameen Bank System

After tsunami, YAMIDA start the program microfinance in Aceh support by Grameen Foundation USA and Grameen Trust Bangladesh. Grameen Foundation support to open 2 branches, Darussalam Branch and Sigli Branch. Grameen Trust Bangladesh support for Krueng Raya Branch. For Krueng Raya Branch we have collaboration with Islamic Relief Banda Aceh too. For interest rate, our Branch in Banda Aceh and Aceh Besar take 15% flat and Sigli 18% flat. In Java, YAMIDA have 2 branch in Cariu, Bogor, west Java and Bantul, Jogyakarta. This Branch in Java is special because we start syariah system in Grameen Bank Model. All of our program manage use the accounting standard and M2 system. M2 is the special for microfinance program, product by Southern Horizon Philipina. Many microfinance (Mfi) in Indonesia are characterized by low outreach, poor portfolio quality, weak management skill and lack of efficient system. To become as a professional Mfi, YAMIDA have more priorities program in :

a. Keep the targeting for poorest and poor women.

b. Built the training and workshop for staff.

7. Training and Workshop Program

We have 11 training modul for grameen system training there are :

a. Grameen Basic

b. Cost Efective Targetting

c. Accounting System

d. Financial Management

e. Credit Dicipline/ loan Quality

f. Financial Analysis

g. Risk Management

h. Business Planning

i. Delinquency Management

j. Management Information System

k. Internal Audit

8. Technical Assistance

Yamida have provide technical assistance to some Private Institution and others, some of them are:

a. MEDCO Company

b. PKM

c. Islamic relief

d. Others