People's Economic Power

By Stube HEMAT Yogyakarta.          

The year of 2025 will be a challenging one for the global economy due to several major factors that influence global economic pressures, such as political uncertainty affecting global financial markets, geopolitical risks in which armed conflicts continue, and the trade dispute between the US and China. These factors will disrupt the global market and supply chain.

Amidst global economic pressures, people's economic power is one of the movements that’s possibly done. With a concept that emphasizes the importance of active community participation in economic activities that’s beneficial for improving shared prosperity. Credit Union (CU) is one form of economic organization that plays an important role to strengthen the people's economy. One of the pioneering CU at the local level /neighborhood level with 100 members is Usaha Simpan Pinjam 59 (USP'59). Savings and giving loan services are carried out every month at the house of the chairman of USP'59, which is also the secretariat of Stube HEMAT Yogyakarta. This activity has quite good dynamics. Initiated in 2001 by a resident who was a Bank employee, and the administrator of the local neighborhood association, this savings and giving loan activity continues to run even though the management personnel are changeable.

The Chairperson of USP'59 for the 2024-2025 period, Ariani Narwastujati said, "Savings and giving loan activity has been operating for 23 years with an initial capital of 2.5 million rupiah. The initial capital came from 100  area members of RT 59 Nyutran Yogyakarta with principal savings of 25 thousand rupiahs each. After being borrowed and saved, it is now around 344 million rupiah." Ariani believes that this business is one of the economic strengths of the local level where its members actively participate in decision-making and business management. The focus of this business is on savings and loans with a maximum loan of 8 million and an interest of 0.8% per month.

The interesting one is that the profits obtained are distributed back to members not only in the form of remaining business results (SHU) but also death funds and social funds. Death funds provide financial support for local resident/member USP’59 that passing away, while social funds are funds for members’ welfare that can be realized based on the agreement made in the Members’ Annual Meeting (RAT), such as parcels, t-shirts, or joint tours.

As one of the RT 59 activity units, the head of RT 59 becomes the supervisor and advisor of this savings and loan activity. Residents feel  that it helps them to get easy loans with fairly low interest. They can use USP'59 to access capital that can be used for various needs such as business capital, education, or other urgent needs because there is also available loan for a 'sebrakan'/sudden loan facility. Low interest is of course more affordable and profitable for its members.

Stube HEMAT once sent several students who were participating in the Jogja exposure program to see closely the savings and loan activities carried out by USP'59 to inspire the formation of local economic power in local regions. Local economic power are also expected to be able to improve the ability of the community to manage their economic activities so that a prosperous society is achieved. ***