Koperasi Mitra Usaha Kecil (MUK)

Indonesia

KOPERASI MITRA USAHA KECIL (Micro Enterprise Partners Cooperative), or MUK, is a microfinance institution on the island of Bali in the country of Indonesia and is the sister organization of long-standing KIVA partner DINARI Foundation. MUK was created in 2009 out of a new Indonesian legal obligation to separate its financial lending operations from the non-profit social programming offered by DINARI Foundation.

MUK provides services to all lower income people throughout Bali, without consideration of race, religion or culture. They assist small businesses and their owners by providing training, business consultation and loans, with the intention of increasing profits thereby enabling the owners to better provide daily needs, education and services for themselves and their families. MUK offers both individual and group “Trust Bank” loans.

MUK Vision and Mission

Mission: To increase public awareness of environmental issues and to provide opportunities for people in chronic poverty to improve their lives.

Vision: A world that is prosperous and free from poverty.

Values: Love, Compassion, Equality, Transparency, Integrity and Credibility.

Commitment: To serve and help the poor.

Strategy: To empower people, create jobs, stimulate small business, and strengthen communities.

Motto: Your partner to success.

DINARI Foundation

In addition to the micro loans offered through MUK, DINARI Foundation offers robust social program covering:

1. Environmental Preservation

2. Community Development

• Improving infrastructure of roads and bridges and supporting building and church renovations

3. Social Services

• Providing support to victims of catastrophes such as the Bali bombings or the Yogyakarta earthquake.

4. Health Program

• Focused on empowering poor women through health training, providing extra food for children under the age of 5, and assisting pregnant or breastfeeding mothers.

5. Animal Husbandry and Agriculture

• This program serves pig and cow breeders in Bali’s Badung and Jembrana regions with business consultation and training to improve business management, loans to increase production and veterinary services as needed.

6. Business Training

• Providing general business consulting and training for a variety of businesses and life skills that are mentioned in the programs above.

Partners

MUK is well positioned in the industry within Indonesia and southeast Asia and has partnered with numerous organizations around the world including Tearfund (New Zealand), Opportunity International Australia (OIA), Opportunity International Deutchland (OID), Habitat for Humanity (Jakarta, Indonesia) and HIVOS (Netherlands).

DINARI Foundation is one partner of Opportunity International Network (OIN-Chicago)

September 11, 2011

As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution.

During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff.

The information gathered during this process, together with the Kiva's new risk rating system and half-star support, has led us to revise MUK's risk rating from 4 to 2.5 stars. The analysts have found that MUK's risk variables, reviewed in the new risk rating model, were most representative of a 2.5-Star rating.

We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio. To view that, please go here: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.

MUK has been informed of our analysts’ findings and their corresponding change in rating.

Why Kiva Works With Koperasi Mitra Usaha Kecil (MUK):

MUK provides loans, voluntary savings, and insurance to low-income women clients in rural areas. Kiva was attracted to MUK for the non-financial services it offers to its borrowers, as well as its emphasis on environmental preservation. The latter is crucial for a community whose livelihood depends on agriculture and cow and pig breeding. Kiva’s partnership helps women expand the scale of pig breeding through “Pig Breeder Group Loans”, while simultaneously supporting a pilot program to turn pig waste into energy that can be used to power household stoves and low-energy lamps. The program’s goal is to have 8,000 households by 2013 installed with “Bio-gas Rumah”, which translates as “Household Bio-gas”. Kiva-supported MUK loans are also currently funding construction of the digester system that will transform waste into energy. Moreover, after going through a straightforward slurry process, the pig’s bio-waste makes excellent fertilizer. MUK also offers to its borrowers, business training, veterinary services, and nutritional and social assistance to children under five years of age and women who are pregnant and breast-feeding. In a country having a diverse ethnic makeup, MUK prides itself on providing opportunity to persons without consideration of race, religion, or culture.

Repayment Performance on Kiva

	This Field Partner	All Kiva Partners
Start Date On Kiva	Aug 31, 2007	Oct 12, 2005
Total Loans	$1,328,425	$425,884,350
Amount of Raised Inactive Loans	$0	$237,075
Number Of Raised Inactive Loans	0	230
Amount of Paying Back Loans	$228,425	$93,843,525
Number Of Paying Back Loans	133	101,372
Amount of Ended Loans	$1,100,000	$331,803,750
Number Of Ended Loans	1,487	435,035
Delinquency Rate	0.02%	2.02%
Amount In Arrears	$44	$1,216,011
Outstanding Portfolio	$224,139	$60,072,158
Number of Loans Delinquent	3	9,818
Default Rate	0.10%	0.97%
Amount of Ended Loans Defaulted	$1,079	$3,220,059
Amount of Ended Loans	$1,100,000	$331,803,750
Number Of Ended Loans Defaulted	3	9,823
Currency Exchange Loss Rate	0.00%	0.02%
Amount of Currency Exchange Loss	$0	$77,435
Refund Rate	0.68%	0.96%
Amount of Refunded Loans	$9,000	$4,068,925
Number Of Refunded Loans	11	4,589

Loan Characteristics On Kiva

	This Field Partner	All Kiva Partners
Loans To Women Entrepreneurs	82.16%	74.03%
Average Loan Size	$202	$407
Average Individual Loan Size	$334	$646
Average Group Loan Size	$1,900	$1,743
Average Number Of Entrepreneurs Per Group	10.9	8
Average GDP Per Capita (PPP) in Local Country	$4,458	$3,347
Average Loan Size / GDP Per Capita (PPP)	4.53%	12.16%
Average Time To Fund A Loan	0.6 days	4.69 days
Average Dollars Raised Per Day Per Loan	$337.78	$86.82
Average Loan Term	8.6 months	9.61 months

Journaling Performance on Kiva

	This Field Partner	All Kiva Partners
Total Journals	1,301	203,281
Journaling Rate	62.12%	39.94%
Average Number Of Comments Per Journal	0.16	0.11
Average Number Of Recommendations Per Journal	10.07	2.73

Borrowing Cost Comparison (based on 2011 data)

	This Field Partner	Median for MFI Peers in Country	All Kiva Partners
Portfolio Yield	45.10%	40.80%	35.02%
Profitability (Return on Assets)	2%	4.4%	-0.38%
Average Loan Size (% of Per Capita Income)	2.80%	25.10%	46.53%

Country Fast Facts

Country:: Indonesia
Capital:: Jakarta
Official Language:: Indonesian
Population:: 222,781,000
Avg Annual Income:: $4,458
Labor Force:: agriculture: 43.3% industry: 18% services: 38.7%
Population Below Poverty Line:: 17.8%
Literacy Rate:: 87.9%
Infant Mortality Rate (per 1000):: 34.39 deaths
Life Expectancy:: 69.87 years

Field Partner Staff

Pak Alit
Zeruya Lesmana
Nyoman Maryani