Informal finance for microenterprises in Indonesia : a case study of Muhammadiyah credit programs

Author:	Rahmawati Husein (Ama)
Dissertation:	Thesis (Master of Community Planning)--University of Cincinnati, 2000.

Microfinance has contributed an increasingly constructive role in recovery process. It demonstrates the ability to speed up economic recovery by supporting poor people who are affected by major disaster or crisis. It gave significant impacts particularly for women who have less access to loans and credits even during the normal situation. In addition, recognizing the existing groups and social network was very important as those are a social capital that can enhance resiliency and lessen people vulnerability. From the case study it shows that the establishment of long-term relationship between individuals and Muhammadiyah/Aisyiyah organization contributes in increasing resilience of the community that affected by natural disaster.

In managing microfinance program, skillful and availability of human resources are keys to providing timely response to recipients of funds. Strong microfinance institutions, in this case Aisyiyah/Muhammadiyah organization at the grass root level are better place to provide relevant and helpful services to beneficiaries which in a short term will help a livelihood and economic recovery and in the long-term can bolster the resilience community. Finally, it may result a significant difference if economic activities are integrated in the emergency plan.