Annisa’s dream of building a latrine came true thanks to mutual cooperation through the VSLA.
Annisa lives in a village in Ketapang and is experienced in managing saving and loans group. She was entrusted by her friends to become the leader of the VSLA group assisted by the program team from Save the Children and Gapemasda with support from Cargill. Before adopting the VSLA model, they had already implemented savings and loans through the Family Welfare Assistance (PKK) group, which is an official government initiative for women. It’s also Annisa who has been managing the savings and loan activities of this PKK group since 2017.
“When they were asked to choose a chairman, people still entrust it to me,” said Annisa.
The VSLA group was formed in 2022 with 20 members. In the second year, they gained 10 more members, although the membership limit is set at 25. Annisa said that her group’s members decided not to split the group as all members trusted her for the leadership.
This group holds a monthly meeting every 15th of the month for three activities at once: VSLA, PKK savings and loans, and Arisan (a social gathering whose members contribute to and take turns at winning an aggregate sum of money). The group saves through VSLA with an agreed lot value of IDR 25,000 (USD 1.67) per lot in 2023. According to Annisa, the total value of the group savings currently amounts to IDR 9 million (USD 621). Each member is also encouraged to borrow from group savings with a maximum repayment period of 3 months. Borrowers must pay off their loans first before borrowing again.
The program team encouraged VSLA groups to use their savings and loans for essential needs, such as education, health, business development, as well as sanitation. For instance, Jamwati took a loan from VSLA to pay for her child’s education. She opted for VSLA since she only had to wait three months to access loans, compared to other savings and loan systems that take ten months.
According to the records as of July 2023, 19 out of 74 loan transactions, which amounts to 22% of VSLA loans, were used by members in the education sector. Apart from education, members also borrow for sanitation needs, for example, building and repairing toilets. There were only 2 instances of using VSLA loans for sanitation purposes, including by Annisa.
Annisa calculated that she needed around IDR 5 million (USD 345) to construct a latrine with a septic tank, but she couldn’t afford it. Therefore, she decided to borrow the money in stages to make sure she could pay it back within 3 months.
“It needs a lot of money to build a latrine, so we do it little by little, not all at once. At most, we borrow IDR 1 million (USD 69) from VSLA to buy something first, pay it off in 3 months, then borrow it again,” she said while smiling.
As the group’s chairperson, Annisa admitted feeling ashamed if she didn’t have her own septic tank toilet.
“As the head of the VSLA, how come I don’t have my own latrine?” she chuckled.
For decades, Annisa and other people relied on a pit latrine by the river. Until today. In September 2023, that dream latrine came true.
Annisa’ family played a crucial role in achieving her goal of having a decent latrine. Her husband helps financially while her daughter Yusnia, who is also a member of VSLA, helped her with a loan from VSLA because Annisa was still paying off her first loan. Once the loan was paid off, Annisa borrowed IDR 1.5 million from VSLA. All these efforts have helped her achieve her goal in just around 4 months. Thanks to her family’ hard work and support, a decent latrine now has been built in Annisa’ s house.
“Only the floor has not been tiled. And we haven’t bought a water reservoir,” she said.
At the village’s heart, Annisa’s VSLA journey shines as a beacon of change. From group initiation to growth, her leadership binds the family and community. Empowered by the program, the group’s loans open doors to essential needs and notably, sanitation. The story of their group showcases the impact of seemingly modest financial support. Her story, among many, reveals how VSLA breathes life into dreams and empowers community.