Escaping the Trap of Loan Sharks

KOMPAS/KORNELIS KEWA AMA

Albertus Seran (right) and his wife Margaretha Seran, are all smiles after their home has been electrified in Silawan village of Belu, East Nusa Tenggara. The couple no longer lives in a darkened house, and also do not need to ask for electricity to be supplied from a neighboring village across the border in Timor Leste.

The use of the village funds for physical development is indeed necessary. However, community development and empowerment also need to be considered. That is why the village-owned enterprise (BUMDs) was established to empower the residents.

The trap of the loan sharks had long ensnared the residents of Kedungjaran village in Pekalongan regency, Central Java. With the interest rate as much as half of the loan principal, the people were suffocated, powerless. The presence of village-owned enterprises (BUMDs) focusing on financial services has changed everything. The residents became familiar with saving until they slowly became economically independent.