Qatar Charity Indonesia (QCI) office since early 2009 has developed a pilot project of economic empowerment program through the establishment of Baytu Tamkin, a model of sharia micro-finance services for poor communities in Babakan Madang district, Bogor regency, West Java province, in association with a local NGO, Tazkia Micro Finance Center (TMFC).

Since the initiation up to present time, more than 1000 people have benefited from this project through a revolving loan-funds mechanism managed by

local partner. At early establishment QCI provided US$ 47.764 for qardh-hasan loan and by the end of April 2011 the loan-funds distribution increased slightly to US$ 427.258 or equals to 873.5 % of growth within 3 years! These additional funds derived from various members’ savings (personal voluntary savings, group savings, and compulsory savings) as well as new funding from other institutions attracted by its success.

Keys for this remarkable achievement lie on the three uniqueness. The first is the criteria of beneficiaries which a hundred percent of them are housewives. They are living in suburban villages with husbands’ low income from uncertain jobs. Most of the community members are elementary school graduates and very limited access to empowerment opportunities. Through Qatar Charity project they have found an opportunity to improve their capacity and capability for a better income and better life. And, this advantage has deepened their commitment for participation.

The second uniqueness of the project is the group-based initiatives. Each beneficiary must perform a group of five members. The group then must attend a 3-days group training for capacity development of members as well as to develop group solidity, fairness and openness. Any propose for loan by a group member must be based on agreement of the rest of group members since they will also have to be responsible for the repayment of the loan whenever the borrower fails to repay (joint responsibility).

The third uniqueness is the Majelis Meeting. A Majelis commonly consists of 5 groups from the same area of neighborhood and the meeting is conducted on weekly basis. Each Majelis Meeting is chaired by one Field Officer representing the Baytu Tamkin institution. Within the meeting, the beneficiaries are led to make pray and promise by the name of Allah SWT to repay the loan through regular and periodic installment. Majelis Meeting is also used as a place for beneficiaries to pay installment, savings and to convey the purpose of borrowing money openly in front of Majelis members.

The Baytu Tamkin institution established by this project has achieved a legal recognition by the government through licensing as cooperative institution in early January 2011. (Ramlan Widiawan)

Indonesia Office

Gedung Grand Duren Tiga, Lantai 3. Jl. Duren Tiga Raya No. 9, Kel. Duren Tiga, Pancoran, Jakarta Selatan 12760
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