Programmes Microfinance

Helping children to get education is one way to get them out of the poverty cycle, however Titian found their parents also need a helping hand to improve their living circumstances. Often the hindrance to their progress is the limited access to capital that small enterprises face in remote regions. That’s why, in 2014, Titian launched its Microfinance Programme.

Titian set up the programme with two leading banking institutions—Panin Bank Syariah and BMT Bina Ihsanul Fikri (BIF) to facilitate capital for micro/small enterprises. The programme was initially offered to the scholarship parents but subsequently expanded to other small entrepreneurs in Bayat, Klaten. The Microfinance Programme is a welcome substitute to the loan sharks who often entrap entrepreneurs in small rural villages like Bayat.

Regular meetings are also held as a forum to teach members how to manage businesses and draw out ideas to improve their productivity and income. Also, building good cooperation between members and allowing them to share with others their success stories about running their businesses.

Titian found that production improved by as much as much as 25% after members got their loan. Many businesses tripled their production as the result of the extra funding. Total loan disbursements as of December 2019 for this programme were valued at Rp 200 million. Several of the recipients were so successful that they moved out of the microfinance programme into a more conventional bank loan indicating the long-term stability of their business.