Financial Year 2008-2009 (1st April 2008—31st March 2009)
“Small Bank” Project
As we enter the 5th year of our existence, we went through the 4th year with more benefit-generating social projects we believe will give a real impact on the life of thousands of people who have experienced years of difficulty in meeting their daily needs.
In Yogyakarta, Central Java, where millions of people are still living below poverty line, we stepped into a new adventure by establishing a “people bank” commonly called “Baitul Maal wat-Tamwil” (house of tax) or “BMT” in short, with a starting capital of IDR 156 million (Indonesian Rupiah), equal to £8,700.oo.
The office of IHSAN-Mulia BMT in the city of Yogyakarta
With technical and admin assistance from a local experienced financial institution, IHSAN-Mulia BMT provides poor people with a small interest-free credit. In most cases, the small credit is used by the borrowers to start their small-scale business up or to enhance their existing ones. But, some people would have used the usually around IDR 500,000.oo (£30.oo) credit for important daily needs.
We decided to establish this “small bank” on hearing that more and more poor people in the rural area outside Yogyakarta had to turn to usurers (individual black market creditors) who charge them a very high interest rate on small loans. It’s a common practice that an usurer charges 100% interest on, for instance, a three months loan of IDR 300,000.oo (£20.oo). Now that we are providing them with interest-free credit, we strongly believe that those vulnerable people will have only one thing in their mind: to work their way hard out of the difficulty they are in.
Supporting by some dedicated friends voluntarily working with a couple of full-time staff at the BMT, hopefully in the coming months we could expect good news from this new project.
Micro-Finance Project
With some similarities to the BMT Project in Yogyakarta, we are providing people on very low or without income in rural Bogor, West Java, with interest-free loans. Some of them are local traditional food producers who sell their products at local markets or makeshift stalls that can be seen on streets’ pavement.
Again, with a prospect of being forced to the no-choice unfairly high interest loans from usurers, some of the helpless people are approached by our volunteers to find out if they’re interested in joining our micro-finance initiative. Through a selection procedure in order for us to get serious and manageable participants, we are now having several small groups of people, mainly housewives, that are trained and guided by our volunteers to improve their skill, competitiveness, and saving habit.
They’re taught how to raise the quality of their product to suit ever higher standard the consumers are looking for. They’re given tips on how to effectively market their products beyond their traditional bases.
Some of the participants of micro-finance project in Bogor during a visit by the Chairman of IHSAN
Housewives are encouraged to make a small saving of IDR 1,000.oo (equal to 6p) a day; and if they do it uninterruptedly for 90 days (three month) consecutively then IHSAN will match the amount straight away and they can use it as they like or continue saving.
We hope that this habit will become something addictive to them so that they sudden needs in their future life will no longer lead them into the trap of greedy usurers.
Qurbani Project Dec 08
Qurbani is an occasion for Muslims to provide the poor with meat (cow meat and sheep meat) to mark the day of annual Hajj precession in Mecca. Hajj is one of the six pillars of Islam in which Muslims, usually those who can afford to travel to Mecca, gather in this Sacred City. To mark the end of the procession, every pilgrim is obliged to sacrifice at least a sheep, the meat of which is distributed to the poor. Muslims who do not go to Mecca for different reasons but can afford to spend money, are strongly advised to sacrifice sheep or cow for the poor people. Indonesian Muslims living in the UK channelled their sacrifice through IHSAN during the Hajj season in December 2008.
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A cow for qurbani in Meulaboh, West Aceh.
Goats for sacrifice in Tembilahan, Riau, are being transported by small boat
There were 31 persons who donated £65.oo each through this charity to buy 12 sheep and three cows. The money raised for the sacrificed animal is £2,015.oo but the total expenditure for this project is £2,162.62p including admin cost and some excess cost. The meat was distributed to people in Meulaboh (Aceh Province), Barus, (North Sumatra Province), Tembilahan (Riau Province), Denpasar (Bali Province), and Gorontalo (Gorontalo Province).
Student Scholarship
In Sumedang, West Java, IHSAN pay for the school basic needs of five bright children from poor families. With a grant of IDR 15 millions (equal to £900.oo), it’s expected that their important financial needs is secured for 24 months. One of our volunteers is charged with a responsibility to oversee the use of the money just to make sure that it’s only used for their educational purposes. Based on the review about the progress the children will achieve, we may continue providing them with their further education finance.
A small ceremony held in our volunteer's residence in Sumedang for the education grant
Almost similar to the Sumedang bright student projects, we also donated some small amount to the orphans in Pondok Benda, Tangerang. Fifty children were given IDR 50,000.oo (£3.50) each as additional gift to what was prepared by the local community who presented them with school accessory/equipments.
Some of the fifty orphans who were given pocket money
Ramadan Breakfasting
Another social program implemented last year was Ramadan breakfasting (iftar) for the poor people –many of them work as rickshaw drivers. Some of them work at rice fields and many of them work as low-paid construction workers.
This program were held in some different places in the city of Yogyakarta, where the effect of 2006 devastating earth quake of 7.6 on Richter scale is still felt by so many people. The mass breakfasting programs were attended by dozens of people and their family members. They were provided with favourite local drink and nice food after a day hard, long hours of fasting
IHSAN’s supporters were appealed to donate money for this special project.
The "buka bersama" (breakfasting together) were held in several places in Yogyakarta
We would like to thank everyone who has helped IHSAN and those who are still volunteering for this beloved charity. We hope that our existing works will continue and expand further.
On behalf of all trustees,
Asyari Usman
Chairman
