PEKKA’s Community-based Insurance, Protecting Community in Lembata, East Nusa Tenggara

Health insurance, which is not yet evenly accessible across East Nusa Tenggara, especially in the region where PEKKA works, is helped by community-based insurance. The system works by each member of the family depositing IDR 15,000 (AUD$1.5) annually with PEKKA Microfinance Institutions. The benefits members receive is health insurance including inpatient facilities worth IDR 400,000 (AUD$40) per person.

PEKKA Microfinance Institutions (Lembaga Keuangan Mikro) also manages a non-collateral Cooperative in which members deposit a compulsory one-time only saving of IDR 50,000 (AUD$5) with further savings on a voluntary basis, starting from IDR 1,000 (AUD 10c) up to a nominal amount depending on the saver’s financial ability. For borrowers, the interest charged is only 2% so that it is not too difficult for them to pay.

The MAMPU program holds regular group discussions to help provide an understanding to the public about the importance of health insurance and how participation in Credit Unions also helps the economy of each family. Hasna Bengang, Secretary of the Kabenasipe Group in Kolipadan Village, Ile Ape Sub-district, said that now people who have taken out an insurance and joined the savings and credit cooperatives, are saved from those offering high-interest loans who have approached them in the past.

“We used to borrow money from other programs that came to this village, and we are still paying the installments because the interest is very high. We are really grateful that after being provided with understanding by the MAMPU program in every meeting, we have become wiser in managing our finances, including sorting things out before deciding to borrow money, which is something we have begun to understand,“said Hasna.

Agnes Peni, Chairperson of Peduli Anak Group in East Ile Ape Sub-district also said that this community-based insurance is very helpful in supporting the health insurance for each member of the group.

“Given that group members have a lot of different activities, like working in the garden, fishing, selling things and being active in the organization, having insurance is very important,“ she said.