Seven reporters from Radio Netherlands Worldwide travelled round the globe looking for small-scale businesses who had been offered microcredit. They are to be featured in this dossier on 25 January.
To whet your appetite, here's a sneak preview from Indonesia, followed by a short account of how it came about from its maker, Junito Drias.
This isn't my first report on microfinance in Indonesia; around two years ago I visited a village in West Kalimantan's interior to investigate whether villagers were benefiting from small loans. The residents opened shops, developed more professional fishing techniques and started small businesses.
Because the villagers were extremely dependent on the loans, the credit organisation needed support from a larger sister organisation operating in the city. The larger credit company was reluctant to provide financial support as it doubted that the economically-isolated villagers would be able to repay their loans.
Ex-prisoners
Microfinance schemes are successful although I do have my doubts about the system. It is supposed to provide people from marginalised groups, such as former prisoners, with loans.
But that is not always the case. Companies providing microfinance loans conduct thorough background checks on the recipient. It is practically impossible for former prisoners to get a loan from a bank or other credit institution. I found a former prisoner who tried to get a microloan in Jakarta, Indonesia's capital city.
Gambling addiction
Raymond Wuisan, 38, was convicted for embezzlement. He stole money from his employer and used it to feed his gambling habit. It's a classic story; at first he wins regularly and starts placing bigger bets, however, he's not using his own money but his boss's. When he wins, he replaces the money but he eventually lost about 300 million rupiah, the equivalent of about 21,000 euros.
For a while, Raymond stays home, but then he returns to work where the police promptly arrest him. He is convicted for embezzlement and sentenced to eight months in prison.
Business plan
After his release, he wanted to start his own business, but even banks specialising in microfinance refuse to lend him the start-up capital. However, Indonesia wouldn't be Indonesia if someone like Raymond didn't know an alternative. He finds somebody with ready cash who is prepared to lend him money based on his business plan.
Delicious!
Jakarta is a dream for journalists, not because it is an exciting vibrant city, but because of the food. My cameraman never orders less than three entrees and he eats them all. The word that he says most often is "delicious".
Living in Jakarta makes you re-evaluate your ideas about microfinance. A Dutch researcher discovered that credit cards function as an informal microfinance system in Indonesia. People operating small shops frequently use credit cards to purchase their supplies.
Pimps
The huge demand for capital has led to the rise of informal banks; some are companies or small businesses, but wealthy individuals also function as informal banks. Employers frequently lend employees money at zero percent interest and pimps often loan money to their prostitutes.
It's a fairly normal situation in Jakarta, a wheeler-dealer city that works via contacts and most people profit from it, including former prisoner Raymond. Thanks to the informal microfinance system, he has a chance to rebuild his life.
Click to watch the video: Microcredit for an ex-convict
Camera: Roland Kremer
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