Loans to women tsunami survivors pay quick dividends

By Emily Will, Mennonite Central Committee

Small loans to women tsunami survivors are paying remarkable dividends - and quickly - to recipients and their families, according to the findings of YAKKUM Emergency Unit (YEU), a member of the global alliance Action by Churches Together (ACT) International.

Murniati, her husband, Yusri, and their four surviving children live in a tiny, makeshift house in the Kayu Jati camp for displaced people, located about an hour west of the city of Banda Aceh. They once owned two homes on the coast and lived comfortably on the earnings of Murniati's catering business and Yusri's income as an employee in an ice factory.

On the morning of December 26, 2004, Murniati and her 15-year-old daughter, Lia, were snatched by the fierce waves of the tsunami. After the first wave dashed them about, Murniati lost sight of her daughter. She clung to a piece of Styrofoam and spent three hours bobbing at sea before being rescued. Later that day the family found Lia's body.

Yusri and Murniati's other four children had escaped the tsunami by running to nearby hills.

Now Murniati's love of cooking for others helps keep her mind off that awful day and the loss of a daughter who was a steadfast companion and helper. With a loan of 3 million Rupiah (about US$300) from a YEU-sponsored credit union, Murniati is back in business.

Murniati is among the 63 women who joined the credit union in her camp. They named it Bungong Selanga, for the ylang-ylang tree, whose sweet-scented flowers are often used in perfume. It is one of four women's credit unions that Natalia "Lia" Caw, area manager of the YEU Banda Aceh unit, initiated for survivors of Lamreh village. Each group has named a leadership team of president, treasurer and secretary. Over the next year, Lia will provide extensive training in financial and organizational management to both officers and members.

Murniati, who is repaying her loan in monthly installments of approximately US$28, earns a profit of about US$50 per month. Because her husband no longer has work - the ice factory was destroyed in the tsunami - he helps her with the catering business. He will also receive a small loan from a men's credit union, with which he hopes to build a small roadside food stand.

Murniati's prime customers are the soldiers overrunning the area, part of the Indonesian government's effort to suppress a secessionist movement. Just a taste of a delectable fish dish, in which flavors of fresh tomatoes, herbs, and spicy chili peppers mingle harmoniously, is all it takes to understand why folks line up for her cooking.

From a spacious, well-stocked, well-supplied kitchen with a paid employee to cramped quarters without cupboards and just two single-burner gas stoves, the couple is starting all over again. When Murniati expresses frustration, Yusri, 48, encourages patience.

"We're used to working hard, and at least we're back building our own business," he says. Like many Acehnese, the couple is proud and independent and reluctant to accept handouts. This self-reliant, “can-do” attitude is a prime factor contributing to the success of both the credit unions and the businesses begun with the loans, YEU's Lia says. Because small-scale Acehnese entrepreneurs understand the importance of credit access to their businesses, they are serious about repaying loans and attending meetings to assure the credit union's future well-being.

The amount of money loaned, either US$200 or $300 per member, depending on the type and size of the enterprise, is a second factor in successful business creation. While not much by North American or European standards, it is significant for small businesses here.

YEU purposefully began separate women's and men's credit unions. In their own credit union, women are beginning to speak up and make decisions; in a mixed group, they would defer to men. Having their own money also enhances women's status at home and fosters collaborative decision-making between husbands and wives, Lia says. Furthermore, it enables women to begin to plan for their own and their family's economic future.

Since the tsunami, women's ability to earn income is more vital than ever. Those who have lost husbands need to become breadwinners. And all want to help rebuild the family's economic base following the material losses of home and possessions.

Mardiah and her husband, M. Jamal, are another couple from the Kayu Jati camp who have started over from scratch. Each received the equivalent of about US$300 from their respective YEU-sponsored credit unions. They pooled their loans to clean, repair and restock their small shop. With the capital, they purchased new display racks and shelves. They also returned to their
living quarters above the store.

A month later, by early April, they were selling at least US$50 of merchandise daily -- snacks, basic groceries and cosmetics, and a range of household goods, from plastic containers to fine china. Their average profit is 10 percent, or $5 of every $50 sold.

They hope to increase their inventory and to be able once again to offer goods to customers on credit.

The couple has four children, all of whom survived the tsunami. One of Mardiah's sisters, however, perished, along with her three young children. Focusing on rebuilding the store keeps her from dwelling on her losses, Mardiah says. She is grateful for the credit union loan that has made it possible.

"I knew they would recover quickly, but I didn't imagine it would be this quickly!" exclaims Lia in admiration, following a recent visit to the two couples.