The Beginning of Cake Making Business in the Village

Siti Rosma, Hajrah, and Hayatan while talking about VSLA

Not all housewives are always identical to gossiping activity. This is proven in Langgomali Village, Kolaka District, Southeast Sulawesi Province. The housewives who join in the Polewali VSLA (Village Saving Loan Accumulating) gather once a month every 11 of the month to save.  

“Usually we gather in the house of the Village Head’s wife once a month, every Friday at 5 p.m. to conduct VSLA activities. The time really fits with us as generally at that time we have just returned from the field, “ said Rosma (49) opening her story about VSLA in Langgomali Village.  

This year, Polewali VSLA has entered the 4th cycle. It takes nine months for a cycle. Meanwhile, the share that is applied to each member is Rp 10,000,-. According to Siti Rosma, it is relatively easy for each member to pay for this amount.

Besides the fines, we usually have social funds and fines for members who arrive late and do not pay. The amount of social fund for each member in each meeting is Rp 1,000,-. Meanwhile, the amount of fine is Rp 2,000,- for each member who arrives late, “ the woman who also becomes the Chair of Polewali VSLA continued.  

Hajrah (44), one of the members of Polewali VSLA, feel grateful to be able to join in this saving group.  

“I feel happy to be able to join because at the end of the cycle I get my saving share, and the loan interest share as well as the share of the total amount of fine, “ she stated.

Indeed, besides saving, members can also borrow money from the VSLA group.

“When we borrow money, the maximum amount of the loan is three times the number of the shares which are paid. The amount of the interest if 2% of the total amount of the loan, “ Siti Rosma added.

The right to borrow money surely benefits the members. Besides, Siti Rosma and Hajrah, Hayatan (49) have also borrowed money from VSLA.

“Because my husband has a cocoa plantation, I borrow money for our plantation, for example, to buy fertilizers and pesticides in order to have a good harvest,” she said.  

Not only Hayatan, but some other members also borrow money for various kinds of needs such as to buy school uniforms and school equipment for children.  Meanwhile, the social funds which are collected at the end of the cycle are used for social purposes such as to visit VSLA member who is sick and also to be donated to the mosque.   

At every end of the cycle, each VSLA member will get their savings to share together with the amount of the loan interest and the amount of fine equally shared with each member.  

The intensive meeting which is conducted every month provides its own benefits to all housewives in Polewali Village. Besides being able to stay in touch, they can also share information and learn together. New ideas also emerge, such as to develop a cake business.  

“This year we start a pie-making business with various kinds of flavor. Initially, it is just a try-out but it seems like a lot of people like to buy the pies,” said Siti Rosma while explaining that each pie is sold at Rp1,000,-.

In this pie-making business, each member has got her own role – making doughs, packing, and marketing to the food stalls. On average, every month Polewali VSLA group can produce 100 pieces of pie. Siti Rosma stated that they chose to make this pie because it can last long and is liked by all people. The result of selling the pies is equally shared with all members.  

“In the future, we plan to increase production after we have got a bigger oven. The group also plans to purchase the oven by using the amount of the social fund collected at the following VSLA cycle. Hopefully, it can really be implemented,” Siti Rosma expected.

Written by: Rena Tanjung, Communications Officer Wahana Visi Indonesia