VSLA Enables the Woman's Group in Pinrang to Have Joint Venture Capital
Cendana village is one of the villages located in Enrekang Regency, South Sulawesi. The majority of the population in this village are cocoa farmers. The distance of Cendana Village from the center of Enrekang Regency is approximately 10 kilometers which can be reached in 30 minutes. Cendana village is located quite far from the nearest financial service providers such as cooperatives or banks. Before Wahana Visi Indonesia (WVI) assisted the Cendana village, the community did not really understand the importance of setting aside money for savings and managing their family finances properly.
WVI entered Enrekang Regency in 2018. Initially, WVI entered and carried out initial socialization on Household Economic Management so that people understood the importance of managing finances to meet all needs. Furthermore, the community started to receive lessons about VSLA (Village Saving Loan Association) and was facilitated to form the VSLA including VSLA Laiting in Cendana village, Cendana district, Enrekang Regency.
VSLA Laiting was formed in September 2018 and was chaired Sullama. Initially, the VSLA only consisted of 20 members, but over time the members grew to 30. It happened because mothers often provide socialization of the impact of VSLA to the surrounding community so many people were moved to join the VSLA Laiting group.
Initially, all of the VSLA members were members of an arisan (frequent community gathering to collect and lend money). After participating in VSLA, they felt a greater impact and benefits when compared to arisan. VSLA had a more flexible minimum savings standard. They could borrow from VSLA at any time according to their needs. After being assisted by WVI through the Cocoa Life Program supported by Mondelez International, the women of the VSLA Laiting group set aside some of their income at VSLA and were able to manage their household needs well which consists of daily needs, children's educational needs, agricultural needs and set aside their income in the bank in the long term to prepare for the future.
In addition to saving, VSLA Laiting also has a Social Fund that is collected at each meeting, which is Rp1,000 per person per week. This social fund is used for the common good. VSLA Laiting group has used social funds to buy a cake oven at a price of Rp3,250,000. The oven can be used freely and alternately to make cakes by the whole group. In fact, the local people who are not VSLA members can use the oven with a rental system. The oven has become an asset as well as a new venture capital that can be used to increase the income of VSLA Laiting members.
Furthermore, VSLA Laiting plans to add group assets through the Social Fund budget by buying items needed by the group so that the VSLA Laiting group can improve the welfare of all group members and the Cendana village community.
Written by Curma Anugerah, Field Facilitator, Cocoa Life Project – Wahana Visi Indonesia
