Program Details: 
Indonesia: Improving Lives and Livelihoods, Reducing Disaster Vulnerability

Since 1998, Mercy Corps has improved the lives of more than 1,000,000 Indonesians across the country’s vast expanse of islands. With the December 2004 tsunami, the May 2006 Java earthquake and the 2007 flooding in Jakarta, our work in Indonesia continues to expand in geographic and programmatic scope.

We’re working to address the root causes of poverty and help communities affected by
disaster and conflict become more stable and productive. In addition to our long-established programs focusing on urban issues and poverty reduction, we are helping more than 517,000 people affected by a string of natural disasters.

Mercy Corps provides both immediate aid and long-term programs to “build back better” by
improving community infrastructure and economic opportunities in Indonesia’s most challenging urban and coastal areas.

Supporting Long-Term Development in Aceh
In tsunami- and earthquake-ravaged Aceh, Mercy Corps focuses on community and economic recovery. We’re conducting village-based and business development programs, including microfinance. Moreover, we are supporting local communities, government and
organizations to give our programs greater – and lasting – impact. Mercy Corps is working to improve livelihoods, families’ access to credit, community infrastructure and governance in 40 villages around Banda Aceh and Aceh Besar.

Combating Urban Poverty in Jakarta
Since 1998, Mercy Corps has been combating poverty and malnutrition among the millions of people living in the urban slums of Jakarta.

With our programs for mothers and children, we help the most vulnerable people become better nourished and more secure in their food supply. Mercy Corps improves the health of mothers and children by teaching and promoting exclusive breastfeeding. One project supports innovative food coops that provide healthy snacks for mothers and children. We are strengthening the ability of local health workers to provide the best care possible and improving access to clean water and sanitation.

We are working with local organizations, businesses and government to advocate for policy changes. In addition, Mercy Corps mobilizes communities to address critical environmental issues such as water, sanitation and solid waste management.

Mercy Corps seeks out creative, market-based solutions that provide economic benefits to
individuals and communities in Jakarta’s slums, including the “informal sector” of the urban poor. For instance, we’re helping 40,000 workers who produce and sell the dietary staples tofu and tempeh to increase their productivity, access new markets and earn more income. We’re also educating parents and teachers about nutrition and working with street food vendors to design colorful carts that appeal to small children with convenient, low-cost and healthy snacks.

Addressing the Urban Energy Shortage
To address the urgent shortage of energy sources in Indonesia’s urban areas, Mercy Corps provides energy-efficient stoves fueled by renewable resources. These stoves benefit the environment by reducing the need for firewood, charcoal and gas and offering a cleaner, safer and more affordable way of cooking. With demand high, we are supporting local businesses to sell both the stoves and the fuel pellets on which they run.

Helping Maluku Province Recover
In the Maluku province, Mercy Corps is helping 4,000 families affected by years of violent conflict return to their homes, recover their livelihoods and resolve disputes peacefully.

We also are partnering with local organizations, communities and government in the slums of the city of Ambon to create better access to clean water and improve the sanitation and hygiene of city’s residents. We are conducting hygiene awareness and behavior change campaigns and supporting projects focused on sanitation and solid waste management.

Reducing Sumatra’s Disaster Risk
West Sumatra is one of the most disaster-prone regions in the world. It faces regular landslides, flooding and earthquakes along with the tsunamis they can cause. Mercy Corps is helping to mitigate the impact of such disasters through an innovative program that brings together communities, government and the private sector to identify and map areas at risk and to plan, train and practice how to respond when disasters occur.

Increasing Access to Financial Services
Indonesia has persistently high poverty despite being home to 50,000 microfinance institutions (MFIs). Nearly half the population lives on less than $2 a day, and 40 million Indonesians lack access to financial services. The current microfinance industry provides only the most basic banking services.

Since 1999, Mercy Corps has been helping develop microfinance in Indonesia. In 2006, we
established the Microfinance Innovations Center for Resources and Alternatives (MICRA) – a support body designed to provide technical assistance, training, ratings, appraisals and financial services to MFIs throughout the country.

Mercy Corps Establishes Bank Andara
Mercy Corps founded Bank Andara to deliver innovative financial services to millions of low-income Indonesian families. It is a wholesale-level “bank of banks” and the first commercial bank in Indonesia created exclusively to serve the country’s huge and well-established microfinance sector. Mercy Corps expects that over the next five years, Bank Andara – working in partnership with MICRA and Indonesian MFIs – will help up to 15 million hardworking low- income people create better lives for themselves and their families.