Small islands - big changes
One hundred and seventy-five kilometres from Kupang, capital of the Indonesian island of West Timor, lies the remote island of Sabu. The community that calls Sabu home relies primarily on subsistence agriculture for their survival. The island’s dry climate means that seasonal hunger is widespread. Yet there is great potential for economic growth through the development of small enterprises. Likewise, in the neighbouring islands of Sumba and Flores, there is widespread need alongside great potential. And that’s where TLM, Opportunity InternationalAustralia’s partner of over 10 years, steps in. TLM knows how to release potential in poor communities and give people living in poverty the hand up they need.
Following a rigorous process of internal capacity building and product redesign, Opportunity International Australia’s partner in West Timor, Tanaoba Lais Manekat (TLM), is now in a promising position for future growth. In 2009, TLM opened two branches and reached thousands of new clients.
One of the new branches is located on remote Sabu Island, situated approximately 175km, and a 16-hour boat ride from Kupang, the region’s capital. This branch was established in order to serve the very poor communities that make up Sabu’s small population. The 70,000 people living on Sabu rely largely on the most basic subsistence agriculture to survive. The island’s remoteness and dry climate means that seasonal hunger is widespread. Sabu has a very low population density. Electricity is only available at night to approximately 60% of the population. Only 40% of the population has access to running water. There is one hospital on the island and several small health clinics.
Despite these challenges there is potential for economic growth on the island. In the six month period from December 2009 to June 2010, TLM reached out to 4,785 new clients as a result of the new branches and growth associated with new loan products that are better suited to the needs of these communities.
In addition to new branches and improved loan products, TLM will also be piloting a mobile banking initiative this year, thanks to grant funding from the Ford Foundation. The communities TLM serves are remote and largely unserved by commercial banks and financial providers. As a result, clients tend to save in unconventional and less secure ways, keeping any savings at home or at their place of business. This leaves them vulnerable to theft and is not conducive to planning for the future – either for their business or their family.
The mobile banking initiative will be launched in the coming months. The mobile banking units will provide clients with access to real-time electronic transactions so they can deposit savings, make loan repayments and withdrawals. Three new savings products will be made available to clients, providing them with the flexibility to choose what will best serve their needs. The areas TLM plan to target initially are home to approximately 240,000 households, 60-70% of whom are currently living in poverty.
TLM is committed to providing the services most needed by their clients – for the long term. Building on a solid foundation, TLM is planning yearly client growth of 30% up to 2012. This will include seven new branches throughout Sumba and Flores islands. Your support is vital to TLM achieving these ambitious goals.
Click here to donate and invest in TLM’s vision for West Timor.