Yayasan Mitra Dhuafa (YAMIDA) will open its first microfinance branch offices in the Aceh Jaya district of Indonesia as a result of a partnership expansion between the American Red Cross and Grameen Foundation. The offices will be located in Lamno, Lhok Kruet and Calang, the most populated regions in Aceh Jaya. The American Red Cross and the Grameen foundation had previously collaborated in Indonesia in Banda Aceh, Pidie, Aceh Besar, Bireuen, Aceh Utara and Lhokseumawe districts of the province of Aceh. YAMIDA began operating as a microfinance organization in Aceh through support from the Grameen Foundation USA and Grameen Trust Bangladesh. Since 2005 the Grameen Foundation has provided USD 200,000 in funding, USD 160,000 as zero percent loans to clients and a USD 35,000 grant for operating expenses.
Districts located in the province of Aceh were among the hardest hit by the 2004 tsunami, and the destructive impact on its infrastructure and basic services made it difficult to introduce extensive microfinance initiatives, although a study by the International Labour Organization and MercyCorps concluded that within a year of the tsunami, local businesses were operating and generating sufficient income to repay loans.
Yayasan Mitra Dhuafa (YAMIDA) was established in 2005 as a local microfinance institution adopting the methods of the Grameen Bank, and is a partner of the Grameen Foundation. It operates in the tsunami-affected areas in Aceh, Indonesia, with 8,987 clients. Grameen Foundation provides funding, on-site technical assistance and management information system assistance to YAMIDA. In 2007 YAMIDA’s total assets stood at USD 733,716 and its debt/equity ratio was 1,239.12 percent.
The American Red Cross is a humanitarian and disaster relief organization which was founded in 1881 and is guided by the Fundamental Principles of the International Red Cross Movement. It has collaborated with Citigroup, MercyCorps and CHF International on microfinance and livelihood initiatives in Indonesia.
The Grameen Foundation (GF) was founded in 1997 by a group of people inspired by the work of the Grameen Bank in Bangladesh. GF supports microfinance programs and works with a global network of 55 microfinance institutions. They provide microfinance program support in the form of funding, technical assistance, training and new technology.
By Lori Curtis, Research Assistant
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