Last November HARA partnered up with BTPN-Syariah (financial institution) to disburse microfinance to 700 smallholder farmers in Bojonegoro, East Java Indonesia. By the end of April, the repayment period ended, and we are very proud to see the great responsibility of farmers regarding their financials!
We can proudly say that the repayment rate is above 97 percent! Way higher than we aimed for.
Kudos to all the farmers and field agents!
First of all, we want to take a minute to stand still by the fact that three farmers passed away during the microfinance cycle… We want to share our deepest condolences to their families and loved ones. Even though their family was able to repay back the microfinance, it is the policy of the bank to take care of this.
The high repayment result shows the strong commitment and responsibility of farmers to pay back. Especially since over 50% of the farmers were able to repay back their microfinance before they started harvesting. The fact that they were able to pay back their microfinance, before the sales of the yield came in, shows that they have their cash flow on track.
Besides the strong commitment of the farmers, the field agents have a huge contribution in this success! Amongst their other activities, the field agents organized small gatherings to remind the farmers about the repayment schedule.
The field agents work closely together to make this a success. In Indonesia, we call this Guyub, which literally means a strong feeling of working together to achieve something!
“We’re beyond proud that this program is going well. And the fact that the repayment is higher than we aim, this is proving that not only HARA is excited for this, but also the farmer.” — Regi Wahyu, HARA CEO and Founder
One of the main challenges’ farmers faced during this microfinance cycle was harvest failure due to flooding. At least five farmers had to deal with the consequences of the heavy rain of this month. Even though they faced problems in producing, they were still able to repay back the microfinance. Currently, we are preparing with our partner Parolamas to provide insurance services to farmers to reduce the risks of harvest failure.
The great results of our pilot project with BTPN-Syariah convinced them to scale up the operations. Currently, we are already in the process of originating another 1,250 farmers with a total value of IDR 2.2B (USD 154,000). Stay tuned for more exciting updates from the field!
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