Innovation

As part of Bank Muamalat Corporate Social Responsibility (CSR) in Economic Pillar, in October 2017, Bank Muamalat launched a Social Trust Fund (STF) in Melaya Village, Jembrana, Bali. The program collaborates with Dompet Dhuafa, and the program is focused on economic development, which is conducted in areas of the Moslem minority, marginal population, by providing them (family) working capital with an easy, cheap and fast process.

The purpose of this program is to introduce to the community the existence of a community economic empowerment program as one of the economic development programs.

Inspiration

The establishment of the STF Program, which is sourced from Zakat fund of Bank Muamalat, resulted from the 2017 General Meeting of Shareholders with the amount IDR 201,277,750.

Jembrana area was once the target of the program from local institutions, namely Dompet Sosial Madani (DSM), where the program has successfully established a business group together with the type of production business of Sugar Aren, Coconut Shell Craft and Lidi Craft which commonly mentioned in the language of Bali is INKEU Crafts.

Bank Muamalat together with Dompet Dhuafa intends to develop existing efforts which are in line with the program objectives of, "Building the infrastructure of local institutions through the integration of potential and resources based on community and Islamic microfinance institutions in order to be sustainable."

Therefore, the STF Program is continuing these program activities to accompany the group of businesses together until the formation of business legality that will be directed to become its institutional cooperative.

“Alhamdulillah, thanks God, at the beginning of August 2017, the office unit of STF Bali Program has been established. Through this program, the community is empowered and kept away from the shackles of moneylenders,” explained Awaldi, COO of Bank Muamalat Indonesia.

Overall impact

Not only working capital, but the beneficiary also gets socialization and education to increase their productivity, which impacts their income. Each family has an opportunity to get up to three financing facilities. For the first facility they will get IDR 1,000,000 to spend for buying raw materials and so on. This program has been implemented and gives good enough results in increasing family income, that with the financing facility that has been given the family can increase the income up to 10% in one facility. The target of this program is to reach up to 60 families in one year.

As a Bank commitment in running the CSR program during 2017, Bank Muamalat has received Indonesia Corporate Social Responsibility Awards 2018 in category of Platinum CSR Awards from Economic Review.

Business benefit

Although the program is running less than a year, the Bank Muamalat has a good reputation as a bank that helps to improve the community’s economy in Melaya Village. The community gets financing facility through cooperatives, and cooperatives use Bank Muamalat as their bank to run their transactions.

Social and environmental benefit

For Bank Muamalat, the CSR program and activities are the important aspects in promoting harmony among all stakeholders. Bank Muamalat also considers the long-term impact to business activities on the society and environment. In Melaya village, most of the community are from Aren Sugar’s farmers, and their wives sell like some groceries or any kinds of foods. With the existence of this financing facility, they can increase the family income. In the social and environmental aspect, the program can improve togetherness among the community, as well as better social resilience, because periodically the community is gathered for education and also monthly recitation, and most important this is continuing to improve the Moslem Unity in the areas where Moslem is the minority.

Interview

Awaldi, MBA