VIENTIANE 2008:
INDONESIA
Achieving Economic Protection
for Homeworkers in Indonesia
Kustiningsih (Cicik)
Chairwoman, East Java HWPRI Cooperative
Organized in December 2006 and legally registered in November 2007, the East Java HWPRI Cooperative is comprised of homeworkers who are self -employed and those in the putting-out system. Its initial membership of 41 homeworkers has now grown to 200.
The loan system used by the East Java HWPRI Cooperative is known as “tanggung renteng”. This means that the loan extended to a group of local homeworkers becomes the responsibility of every group member. For example, if one member defaults in repayment, all the members must be liable, and therefore, must assume the responsibility to cover that loan.
The initial capital of the East Java HWPRI Cooperative came from the OXFAM Hongkong Program. Today, the capital of the Cooperative totals USD20.000 (twenty thousand dollars).
The East Java HWPRI Cooperative offers three forms of savings: a) Principal Savings, b) Obligatory Savings, and c) Voluntary Savings. Principal savings accrues to a member in the amount of IDR250.000 (two hundred and fifty thousand rupiah) or USD20, for the self-employed and IDR50.000 (fifty thousand rupiah) or USD4 for the putting-out system homeworker. Obligatory savings for each member amounts to IDR1.000 (one thousand rupiah) per month. Voluntary savings could be in any amount that a member chooses or can afford to save.
Aside from the economic protection that members generally receive, training activites from the East Java HWPRI Cooperative Committee, MWPRI, and the government (Cooperatives Agency) are also undertaken. Further assistance is extended in the marketing and trading of products, specifically the HWPRI Collection, through local, national, and international exhibits. In the near future, the Cooperative plans to implement a social protection program that will cover insurance for education, health and other social concerns.
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