AHMAD JUWAINI Presiden Director of Dompet Dhuafa Foundation

About Dompet Dhuafa Dompet Dhuafa (DD) is a nonprofit organization founded by the community which aims to raise the dignity of the poor social humanity using charitable fund and other funds that are lawful and legal, whether it’s come from the individual, group, or company. Dompet Dhuafa was established in 1993 by some Indonesian journalists in Republika Newspaper who are concerned with the conditions of poverty in the country. Dompet Dhuafa manages four major programs, namely: education, health, social development and economic empowerment

About Masyarakat Mandiri Masyarakat Mandiri is a economic empowerment program was initiated by Dompet Dhuafa in Masyarakat Mandiri is a community empowerment program, work specifically for poor people in rural, urban, region of origin of migrant workers and community in disaster areas. The community empowerment process oriented to realize the self- reliance of the community to improve their quality of life, by using of local natural and human resources optimally. Masyarakat Mandiri implement Islamic Microfinance, by the mechanism of revolving funds and assistance to develop micro- enterprises

PRE- PRELIMINAR IES IMPLEMENTATI ON DISENGAGEMENT PROGRAM PHASE PRELIMINAR IES Secondary Data Collection Survey and Field Observation Determination of target areas Identification and Assessment Appraisal Local Workshop  Partnership Building Program Design with Multi Local Stakeholder Program Recommendation Socialization Locating and Recognizing target Groups Establishing groups and local institution Financing, developing, improving local cadre, and strengthening institution Local cadre autonomy Local Institution autonomy MONITORING AND EVALUATION

MENTORING PHASE (1) Pioneering and Growth Phase (2) Strengthening Phase (3) Independent Phase Growing trust between members of groups Building consensus and commitment Business strengthening Institution strengthening Networking of multi- stakeholder, marketing access and information Financial strengthening Business stabilization Products Standardization ISM’s management stability The network with multi-stakeholders in marketing access, information and financial service have been structured ISM’s ability to cover their operational cost

THE DIRECTION OF MENTORING PHASE Awareness Organizing Local Cadre Technical Support System Management Self-potential and environment recognition process To reflect and to project communities condition The development of Organization and Institution must begins from the citizens’ initiative and voluntarily Organization strengthened as basis that make the society empowered Preparing local cadre for development of self- reliance that eventually will take over mentoring after the program ends To control information resources An appropriate use of technology A sustainable livelihood system Linking of cross-interest groups of actor Linkages between actors (Government, Corporation, NGO and Academician)

partner KM INDUK Independent Group (Kelompok Mandiri) Independent Group (Kelompok Mandiri) Main Group (Induk) Community Organization (IKHTIAR SWADAYA MITRA) Community Organization (IKHTIAR SWADAYA MITRA) Board of Trustees from the Partners (Majelis Musyawarah Mitra) Board of Trustees from the Partners (Majelis Musyawarah Mitra) Board of Partners The Organizing Model of Local Institution “ISM = IKHTIAR SWADAYA MITRA

ISM institution have legal corporation (koperasi) or any other form that suits community requirements Activities of Economic Empowerment (1) Pioneering and Growth Phase (2) Strengthenin g Phase (3) Independent Phase ISM Business Strengthening Organization Strengthening Business strengthening Capacity Building Mentoring ISM Induk KM Socialization Forming Groups Feasibility Studies of Beneficiaries Groups Compulsory Training Financing productive business Business mentoring Local Cadre System Preparation An Independent administration system Strengthening system, financial report and transparency Strengthening management system of local institution Business strengthening of individual and institution Strengthening the network of local multi-stakeholder Autonomy Intellectually Material Management Autonomy Workshop Other strengthening needed Development of network and business work Evaluating of the autonomy process Asset reform management ISM Induk KM Duration of mentorship

EXAMPLE OF EMPOWERMENT MODEL APPLICATION IN TARGET AREAS

The Empowerment of Micro Enterprises Food Peddler in Jakarta’s Suburb areas Susceptible to the use of hazardous chemicals 1.Forming food merchant groups 2.Strengthening the commitment of healthy food 3.Financing the business process on based groups 4.Financing a joint-venture that managed by ISM (community organization) 5.System Affirmation 6.Actor regeneration/cadre

The Empowerment of Micro Enterprises Food Peddler Jakarta’s Suburb areas ISM Induk KM Urban ISM’s Corporation as Center Knot to Local Economy Empowerment Business that owned and organize by groups and/or institution Mentoring process toward institution autonomy Snack based business Business that owned and organize by individual Organizing Committee that was point and elected by the society Business groups and Institution Mentoring, actor regeneration, and monitoring

Coconut Sugar Community Empowerment in Regency of Pacitan, East Java 1.Forming the group of sugar craftsmen 2.Financing the business process on based group 3.Financing a joint-venture that managed by Community Organization  House of coconut sugar industry 4.Strengthening of sugar market network to factories and industries that requires sugar as raw material 5.Regeneration of system management and the market products 6.Using Appropriate technology

Empowerment Model of Coconut Sugar Farmer in Pacitan’s Coconut Centre ISM Induk KM ISM Manggar Sari Corporation as Center Knot of Local Economic Empowerement Business that were managed by local institution (ISM) Mentoring process toward institution autonomy Sugar based business that were managed by groups Committee elected by the society Business’ groups and Institutions Mentoring, regeneration and monitoring

Green Mussels Farmer SERANG BANTEN 1.Forming green mussels farmer groups 2.Strengthening the commitment of Quality Product 3.Financing the business process on based groups 4.Financing a joint-venture that managed by ISM (community organization) 5.System Affirmation 6.Actor regeneration/cadre

Sinabung Farmers (North Sumatera) 1.After Eruption Disaster 2.Forming Holticulture Plant Farmer groups 3.Financing the business process on based group 4.Business Facilitation by ISM/community organization 5.System Affiermation 6.Actor regeneration/cadre

ROLE OF MICROFINANCE SERVICES MAQASIDH SHARIA SOCIAL ROLE ECONOMIC ROLE Services of Microfinance Program Easy access Affordable Simplicity Flexible collateral Pick up services Risk mitigation Monitoring Services of Financial inclusion Micro financing Micro saving Micro takaful Transfer Micro pension fund Emergency financing Bill payments

ROLE OF MICROFINANCE SERVICES Social Program Services Needs Fullfuilment Bailout Debt Health care Social services Motivational support mentoring Basic education scholarship Social inclusion Services Regular meeting Saving program Family financial management training Micro Ent. Mgt Training Micro Ent. Mgt Marketing training Qardh Financing SOCIAL ROLE

Outcome of Microfinance Services (double bottom line) OUTREACH Funding independent Profitability Operational efficiency Fund efficiency Staff productivity Financing performance Asset growth Sustainability Institution Number of members Total deposits Total financing Number of borrowers Average financing Number of community Area coverage

Results Program (After 3 years) Number of Cooperative 45 Number of Member Changes of Beneficiaries Increase Income 28% Reduce the Depth of Poverty 44%

The Changes of Income Percapita Income Percapita 2012Income Percapita 2015

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