Social safety net fund success stories

By Joko Sarwono

BOGOR, West Java (JP): Newspapers run daily stories on the mismanagement of the social safety net fund, but some locals in Baranangsiang subdistrict here have positive stories to tell about the fund, which is meant to help the crisis-hit population survive.

Wiwin, a 39-year-old food vendor, Carito, a 50-year-old tempeh (soybean cake) maker, Supandi, a 45-year-old owner of a bicycle repair shop, and Chandra, a 34-year-old man who makes decorations from the recycled rubber sandals are among those who have benefited from the program.

Wiwin received a loan of Rp 250,000 (US$28) to open her shop. In the past she had worked as a gado-gado (vegetable salad) and fried food vendor, but never managed to improve her life until her new business took off.

"It's probably because the money was my own, so I never managed it well," said the single mother of one son, whose husband left her 14 years ago.

Now she is using better management practices, including recording her daily income and expenses, and has seen a difference. She is now making Rp 30,000 a day compared to the Rp 16,000 she was making when she started the business two months ago.

She saves Rp 1,000 every day to repay her safety net loan, while the rest of her income goes back into the shop. "Two months ago I did not have enough capital to sell cigarettes, now I sell them," she said.

"My brother now helps me with my daily needs, so I can work harder and save and be independent some day," she said.

Carito has been making and selling tempeh for the past 30 years. The economic crisis which began in 1997 ruined his business. In the past he paid Rp 1,300 for a kilogram of soybeans, and now he has to pay up to Rp 5,500 for the soybeans.

He made smaller and fewer tempeh, sold it at higher prices, but still he barely survived,

Every day Carito processes up to 30 kilograms of soybeans into up to 150 tempeh cakes. "I have to produce that much in order to get a profit of Rp 15,000 to Rp 20,000 a day. That money is barely enough to pay for my family's daily needs," he said.

He recently received a loan of Rp 1 million from the organizer of the safety net fund which he used to buy 200 kilograms of tempeh. "Now I don't have to go to the market every two days to buy soybeans, so I am saving money and time," he said.

Supandi sells used bicycles whose quality are not much different from new bicycles but whose prices are much lower. Because of the crisis, more people want to buy used bicycles and he is earning a profit.

The loan of Rp 500,000 that he received, however, was not enough to cover his needs.

He spent Rp 300,000 to buy spare parts and five used bicycles. He repaired and polished the bikes, and had no trouble selling them. "Buyers waited to buy those bikes. Every single used bicycle I repair and sell here at my shop sells like hot cakes," he said.

However, he said he needed at least another loan of Rp 1 million in order to stock up on used bicycles.

Chandra received a loan of Rp 2 million and found the money gave his business, which employs 180 of his neighbors, a necessary boost. He began his business one year ago, after resigning from his job as a debt collector for TVRI Foundation to try his hand at something else.

"This business (of making decorations from used rubber shoe soles) has good prospects," he said.

In January 1999, he still worked alone, producing up to 100 decorations per week. Salesmen brought his work to Mangga Dua shopping center and sold them for Rp 2,700 each.

"I heard that traders in Mangga Dua then resold my pictures to Japan, Singapore and Middle Eastern countries," he said. "My customers said they were satisfied and wanted me to make more."

That was when he recruited 10 youths from his neighborhood and trained them to help him in his business.

"I designed the pictures, they did the rest," Chandra said.

Each of the workers made up to Rp 700 for every decoration they produced. Every week, the workshop produced up to 1,000 decorations and the orders continued to pour in.

"That's when I realized I needed more capital," he said. He asked for Rp 15 million but received only Rp 2 million from a scheme known as the economic empowerment of crisis-hit community members organized by the local administration.

Even so, Chandra made good use of the funds. He approached school dropouts, unemployed people and housewives, asking them to join his business.

"I train them and give them the raw materials so they can work at home," Chandra said. He said he was now producing up to 10,000 wall decorations and was filling all his orders.

Wiwin, Carito, Supandi and Chandra said they encountered no problems requesting the social safety net funds. They received their promised money in full and were required to repay the loans, plus 10 percent interest, in 11 months.

The four people attributed the ease and success of their social safety net experiences to Dadang Ruhyana, a student activist who is also a consultant for the social safety net program in their neighborhood.

The graduate of the Bogor Institute of Agriculture, who currently is studying at Djuanda University, said he never encountered any problems with bureaucrats, "probably because they see I am a student, so they're reluctant to cause troubles".

Dadang said he used his activities to also teach the poor about Islam. "I try to convince them that if this program succeeds, they will enjoy not only the material benefits but also obtain a good reputation."