Universitas Gadjah Mada
Faculty of Economics and Business

The impact of the eruption of Mount Merapi in addition gives rise to loss of life also cause economic activity to be disrupted and even halted citizens. In addition to dead livestock, destroyed homes, not least the people who lost their jobs and livelihoods such as farming, trade, etc.. With that condition, the Research and Training Faculty of Economics and Business (P2EB) Faculty of Economics and Business UGM with Sharia BPD DIY launched Merapi Disaster Victims Economic Empowerment.

P2EB Director Dr. Anggito Abimanyu, M. Sc says the program aims to assist recovery and economic activity of society who are victims of the eruption of Mount Merapi. These programs include the provision of financing schemes and assistance for people who become victims.

This is a real form to respond to the needs of people who suffer the eruption of Merapi," said Anggito before the implementation of the MOU with BPD Sharia, Friday (10/12) at FEB UGM.

He explained that through this scheme Merapi eruption affected communities would benefit guarantee to its customers including BPD Sharia Merapi eruption victims. Guarantee will be given to approximately 100 customers BPD credit. In addition, loan interest subsidies, guarantee funds with mortgage interest subsidy comes from donations.

Of course for this assistance productive business activities Sharia BPD clients will be done," he explained.

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

In the same place BPD DIY Marketing Director Bambang Setyo Pranoto said the amount of losses as non-performing loans / loss suffered by customers due to eruption of Merapi Sharia BPD reach USD 4 billion. As for the total BPD DIY reached IDR 18 billion. Bambang explained later on the distribution of aid financing will be through the BMT or cooperatives.

"If it directly into the community will be difficult. Through BMT or cooperatives will be faster and precisely because they are the one who knows the exact conditions of its members, "said Bambang.

In his view, the conditions of Sharia BPD clients who are victims of the Merapi eruption there is a minimal ability to repay loans, some are indeed not able anymore but have the will to bounce back. It is expected that with the help of this funding scheme gradually able to revive their economy.
"For a very mild interest around 6% per year. Far as compared to conventional interest rates that can reach 12% per year, "he said.

Bambang added clients who are victims of Sharia BPD eruption of Merapi, among others, many working in the sector, goats, ducks, barking pondoh business, trade and even wood charcoal business. At least now there are 6 BMT are ready to be invited to partner and deliver immediate assistance.

"If the six funds managed by BMT means each range from USD 300 million. The rest can still be developed through a cooperative, "said Bambang.

Both Anggito and Bambang in the opportunity it also hopes that this step forward can be transmitted. Thus, the Merapi eruption affected communities will soon bounce back wheels of the economy as usual.

Source: www.ugm.ac.id