ABOUT
Partner Profile - Tanaoba Lais Manekat Foundation
Tanaoba Lais Manekat (TLM) was established in 1995 and is located in West Timor, in the eastern-most province of Indonesia. TLM is now the leading non-government organisation (NGO) in Nusa Tenggara Timur (NTT), the poorest province in Indonesia with over 80% of the 4.2 million population living on less than US$2 a day. The mission of TLM is to serve with love as an efficient and professional organisation characterised by honesty, responsibility and a desire to grow.
TLM employs 149 staff who serve 18,021 clients providing microfinance and enterprise development services primarily to rural communities, where the poorest of the economically active in Indonesia reside. The partner’s head office is based in Kupang city, the capital of the province and currently operates 10 branches and three rural service posts.
TLM has introduced a variety of innovative enterprise development products and is positioning itself for significant growth over the next three years, aiming to reach 14,000 new microentrepreneurs by 2008.
To achieve their goals, TLM provides business capital, training, resources and support for their clients. They aim to foster leadership and encourage their clients to interact with their local communities. Through the training they provide, clients learn the importance of education and also gain an understanding of health, nutrition and hygiene issues.
Microfinance
In accordance with Indonesian law, TLM is in the process of converting to a Rural Bank. This will enable it to expand its range of microfinance services, including the provision of microinsurance.
Small Group Lending
These loans are provided for small groups of five members. This program is most effective in rural and semi-urban communities. Clients receive a safety deposit box from TLM to place their weekly loan repayments and savings. This teaches the clients the discipline of saving and budgeting, and ensures loan repayments are made on time.
Individual Lending/Achievers
This program was designed to assist those clients who have shown the potential to significantly expand their businesses. These clients receive specific business advice and training. They also develop a simple business plan before receiving their loans. Through their businesses, these clients become agents of transformation by employing other people and becoming key members of local and business networks.
Enterprise Development Services
Cattle Fattening
This innovative microfinance product is designed for poor rural farmers. Farmers receive from one to four cows, which they fatten for six months before reselling. A proportion of the farmer’s profit is allocated to compulsory savings. These funds are then used as part of the capital cost of buying additional cows in later loan cycles. In this way, farmers become stakeholders in the program and receive a share of the profit based on their investment. TLM is planning to establish a number of rural service posts by 2007 in order to expand this program and meet the needs of cattle farmers.
Seaweed Cultivation
This product targets poor rural farmers in coastal villages who use their loans to establish or expand their seaweed cultivation business. In a region where the dry season runs for eight to nine months each year, obtaining a source of income from the ocean is an excellent way to supplement their subsistence farming. This program has moved from a successful pilot stage and will be expanded to help create markets for the seaweed farmers. TLM is planning to establish a seaweed marketing company to purchase dry seaweed for export by mid 2007.
Community Training
TLM also seeks to improve the human resources of the community through education and training programs. This reduces the incidence of business bankruptcy and increases client productivity, efficiency and sense of social responsibility. The aim is to assist microentrepreneurs in developing sustainable businesses so they can improve their quality of life and give back to their communities. TLM reaches 80,000 people annually through its scheduled Community Information Evening, which is free for anyone to attend.
Emergency Aid
TLM is well equipped to provide emergency aid for victims of persecution, violence and natural disasters due to their community development work. Specifically, TLM has been involved in the provision of food, cooking equipment and clothing for East Timor and Maluku refugees. TLM has also been involved in flood relief in the nearby cities of Atambua and Soe.
Performance Indicators
TLM is positioning for growth and are making significant changes to their existing operations. TLM will convert its microfinance operations to a rural bank, expand its regional network of rural service posts, and increase their range of products and services. A reduction in the growth rate of clients, loan portfolio and other performance indicators is normal as TLM restructure operations in order to increase their capacity for growth.
*Operational sustainability is the ability of an organisation to cover the costs of its lending program with the revenue earned from its lending program.
**Financial sustainability is the ability of an organisation to cover the costs of its lending program with the revenue earned from its lending program including the cost of its capital, in particular inflation.
For more information, visit: http://www.tlmfoundation.org/intro.htm
TLM employs 149 staff who serve 18,021 clients providing microfinance and enterprise development services primarily to rural communities, where the poorest of the economically active in Indonesia reside. The partner’s head office is based in Kupang city, the capital of the province and currently operates 10 branches and three rural service posts.
TLM has introduced a variety of innovative enterprise development products and is positioning itself for significant growth over the next three years, aiming to reach 14,000 new microentrepreneurs by 2008.
To achieve their goals, TLM provides business capital, training, resources and support for their clients. They aim to foster leadership and encourage their clients to interact with their local communities. Through the training they provide, clients learn the importance of education and also gain an understanding of health, nutrition and hygiene issues.
Microfinance
In accordance with Indonesian law, TLM is in the process of converting to a Rural Bank. This will enable it to expand its range of microfinance services, including the provision of microinsurance.
Small Group Lending
These loans are provided for small groups of five members. This program is most effective in rural and semi-urban communities. Clients receive a safety deposit box from TLM to place their weekly loan repayments and savings. This teaches the clients the discipline of saving and budgeting, and ensures loan repayments are made on time.
Individual Lending/Achievers
This program was designed to assist those clients who have shown the potential to significantly expand their businesses. These clients receive specific business advice and training. They also develop a simple business plan before receiving their loans. Through their businesses, these clients become agents of transformation by employing other people and becoming key members of local and business networks.
Enterprise Development Services
Cattle Fattening
This innovative microfinance product is designed for poor rural farmers. Farmers receive from one to four cows, which they fatten for six months before reselling. A proportion of the farmer’s profit is allocated to compulsory savings. These funds are then used as part of the capital cost of buying additional cows in later loan cycles. In this way, farmers become stakeholders in the program and receive a share of the profit based on their investment. TLM is planning to establish a number of rural service posts by 2007 in order to expand this program and meet the needs of cattle farmers.
Seaweed Cultivation
This product targets poor rural farmers in coastal villages who use their loans to establish or expand their seaweed cultivation business. In a region where the dry season runs for eight to nine months each year, obtaining a source of income from the ocean is an excellent way to supplement their subsistence farming. This program has moved from a successful pilot stage and will be expanded to help create markets for the seaweed farmers. TLM is planning to establish a seaweed marketing company to purchase dry seaweed for export by mid 2007.
Community Training
TLM also seeks to improve the human resources of the community through education and training programs. This reduces the incidence of business bankruptcy and increases client productivity, efficiency and sense of social responsibility. The aim is to assist microentrepreneurs in developing sustainable businesses so they can improve their quality of life and give back to their communities. TLM reaches 80,000 people annually through its scheduled Community Information Evening, which is free for anyone to attend.
Emergency Aid
TLM is well equipped to provide emergency aid for victims of persecution, violence and natural disasters due to their community development work. Specifically, TLM has been involved in the provision of food, cooking equipment and clothing for East Timor and Maluku refugees. TLM has also been involved in flood relief in the nearby cities of Atambua and Soe.
Performance Indicators
TLM is positioning for growth and are making significant changes to their existing operations. TLM will convert its microfinance operations to a rural bank, expand its regional network of rural service posts, and increase their range of products and services. A reduction in the growth rate of clients, loan portfolio and other performance indicators is normal as TLM restructure operations in order to increase their capacity for growth.
| Performance Indicators | 2004 | 2005 |
| Average loan size A$ | 172.34 | 84.78 |
| Number of active clients | 14,732 | 16,849 |
| Portfolio (funds with clients) A$ | 2,135,319 | 1,313,172 |
| Portfolio in arrears >30Days | 4.51% | 9.6% |
| Portfolio at risk >30 Days | 4.81% | 12.23% |
| Percentage of loans to women | 52.76% | 54.12% |
| Operational sustainability* | 85.92% | 82.35% |
| Financial sustainability** | 77.27% | 68.02% |
*Operational sustainability is the ability of an organisation to cover the costs of its lending program with the revenue earned from its lending program.
**Financial sustainability is the ability of an organisation to cover the costs of its lending program with the revenue earned from its lending program including the cost of its capital, in particular inflation.
For more information, visit: http://www.tlmfoundation.org/intro.htm
