• Jogjakarta, Indonesia

Sanggrahan Village Micro-Credit Program

Empowering economic development at the grassroots

Watiyem (aged 44), is the owner of a small warung where she sells snack to children in the village. She set up her warung with the help of a loan through the Sanggarahan Women

Quake Fund is supporting the establishment and ongoing activities of a micro-finance program in Sanggrahan village. The program aims to achieve sustainable economic development at the grassroots level and empower communities to manage their own finances. Quake Fund supplies a small pool of funds that can be used as a ‘micro-bank’ from which individuals within the community can borrow from to use as working capital to set up small businesses.


The initiative came about after discussions between Quake Fund donor Graeme McCrae and Sanggrahan community leadership. Quake Fund then came in to facilitate the program, ensuring transparency, helping to negotiate and draft program guidelines and loan agreements. The majority of the funds were donated via Quake Fund by the generous contributions of the McCrae family and friends.

Quake Fund Assistance

Quake Fund has had a significant role in program planning and development. Quake Fund has worked closely with Sanggrahan neighbourhood groups, the Sanggrahan Steering Committee and Quake Fund donors to develop a program agreed upon by all parties via a consultative and open process. Quake Fund has also facilitated the funding of the Sanggrahan Village Micro-Credit Program. The actual program gives a high degree of autonomy to the Sanggrahan community to decide upon their own priorities. The micro-credit facility may be used to fund any business development venture as recommended by a neighbourhood group and approved by the Steering Committee. This may include but is not limited to:

• Handicraft businesses
• Farming ventures
• Food production ventures
• Small shops or warungs

Sariyati (aged 58) and her husband received a micro-finance loan for their bamboo chair (lincak) business. Once they have paid off their first loan, she hopes to get a second loan to expand her small business selling gudangan (a local salad dish, pictured).

To ensure transparency and accountability, the neighbourhood groups and committee submit bi-monthly reports and accounts, which are audited by Quake Fund staff.

The project has been implemented in two phases. Each phase includes 14 months periods with a loan sum of 4,000,000 IDR. The lump sum is managed by several trusted member of women in Sanggarahan, who then lend out smaller amounts to families in the village to support their new economic initiatives.

Project Outcomes

Quake Fund’s role in micro-credit program is ongoing, as it will continue to monitor progress and report on the program’s development. The project currently supports the small enterprises of more than 40 families in Sanggrahan. As loan repayments are received every 35 days, the number of participating families is expected to increase well into the future. Look out for future updates!

Ngadinem (aged 59) is a seasonal labour who works on somebody else's land. She planed to build her own small business: selling sweet porridge for neighbors in the village.

Quake Fund volunteers with Sanggrahan village women at monthly gathering in December 2010

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