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  • UGM P2EB - BPD DIY Empower Merapi Eruption Survivors

UGM P2EB - BPD DIY Empower Merapi Eruption Survivors

  • 14 December 2010, 08:59 WIB
  • By: Marwati
  • 12492
  • PDF Version


YOGYAKARTA, The impact of the eruption of Mount Merapi is the loss of life anddisruption to people's economic activity. Besides the dead livestock, destroyed homes, many people also lost their jobs and livelihoods such as farming, trade, etc. With that condition, the Faculty of Economics and Business Research and Training (P2EB) UGM Faculty of Economics and Business with BPD Syariah bank of the Province of Yogyakarta Special Region (BPD DIY) launched the Economic Empowerment program for Merapi Disaster Survivors.

P2EB Director Dr. Anggito Abimanyu, M. Sc, says that the program aims to assist the economic and activity recovery of society affected by the eruption. These programs include the provision of financing schemes and assistance.

"This is a real contribution to respond to the needs of people who suffer in the eruption of Merapi," said Anggito before the implementation of the MOU with BPD Syariah, Friday (10/12) at Faculty of Economics and Business UGM.


He explained that through this scheme, the BPD Syariah clients affected by the eruption would get the benefit of warranty. The warranty will be given to approximately 100 clients of BPD credit. In addition, subsidies of loan interest, warranty funds with mortgage interest subsidy come from donations.

"Of course for this program, support for productive business activities of BPD Syariah clients will be given," he explained.


Anggito added that the amount of donations that have been collected and will be distributed soon currently reached Rp 2 billion.

At the same place, BPD Marketing Director Bambang Setyo Pranoto said the amount of losses such as  non-performing loans suffered by customers due to the eruption reached Rp 4 billion, as for the total it reached Rp 18 billion. Bambang explained that later on the distribution of financial aid will be through the BMT or cooperatives.

“It will be very difficult to distribute it directly to the community. Through BMT or cooperatives it will be faster and accurate because they are the one who knows the exact conditions of its members," said Bambang.


In his opinion, some of BPD Syariah clients have minimal ability and some are indeed unable to repay loans, but they have the will to recover. It is expected that this funding scheme will gradually be able to revive their economy.


"The interest is quite low, around 6% per year. It is by far lower compared to conventional interest rates that can reach 12% per year," he said.


Bambang added that the clients mostly work in the goats, ducks farming or animal husbandry sector, salak pondoh (snake fruit) plantation, trading and even wood charcoal business. At least now there are 6 BMT’s that are ready to become a partner and immediately deliver the assistance.


"If there are six BMTs it means that the funds managed by each BMT are around Rp 300 million. The rest still can be developed through the cooperative," said Bambang.


Both Anggito and Bambang in the opportunity also hoped that later on this move can be sustained to revive their economy.

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