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| PT Holcim Indonesia: Micro Business Development in Narogong and Cilacap |
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Project description Working with community leaders to eliminate poverty in the areas surrounding our plants, Holcim Indonesia is encouraging micro-business development through the support of community-administered revolving funds in Narogong (West-Java), and Cilacap (Central-Java). |
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Objectives Having injected the necessary start-up funds in 2006, our objective is to develop the micro finance institutions (MFI) to a level of complete self-sufficiency and independence by 2010. The communities deposit capital into funds, and MFI management ensure the proper distribution of resources. As value for both Holcim and the MFIs, Holcim will seek the support of MFI staff for future community training programmes; in this way, MFIs are empowered within the community, while simultaneously working to develop the skills and potential of the community. |
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Activities Micro finance institutions have been established in nine villages around the Holcim plants, and have been provided the framework with which to manage their own funds. Training and apprentice work was provided by Holcim, and the institutions have been widely promoted through door-to-door activities. A total of Rp 300 million was made available in 2006 for micro-finance grants, reaching 1,850 beneficiaries in 19 villages around Cilacap and 6 villages around Narogong. Successful micro-businesses supported by MFI funds include fish and crab farming ponds, mushroom farming, cattle farming, and construction material retail. Skills training workshops were conducted on developing business concepts, and IT skills were strengthened to support community projects. |
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Results The MFIs are run with full teams of local tellers, marketing officers, and day-to-day managers. In Narogong, there were 1,492 account holders by April 2008, and assets of the MFIs reached Rp 1,070 billion – 305% of Holcim’s capital contributions. In Cilacap, six MFIs have been established, involving 607 people, reaching 886 members of the community. At the end of 2007, the total funds available reached Rp 1,097 billion – a figure set to double by the close of 2008. |
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