Hope Blossoms on a Ship

KOMPAS/KARINA ISNA IRAWAN

=Foreign tourists take pictures at Komodo International Airport in Labuan Bajo, East Nusa Tenggara, Friday (26/7/2019).

Residents of small islands around Labuan Bajo, East Nusa Tenggara, are now relieved. Access to financial services makes it easy for them to control the prices of basic goods.

Hopes of living on an equal level with people on the mainland of Java are getting closer to being realized. Mulfiyati, 40, a resident of Komodo Island, East Nusa Tenggara, always has access to stocks of basic necessities. She can order a variety of food stuffs from outside the island every week. She simply needs to transfer the money through her bank to get whatever she needs.

"Now there are bank services on ship from island to island. Previously, people were forced to go to Labuan Bajo if they wanted to transfer money," said Mulfiyati, a souvenir seller on Komodo Island, Thursday (25/7/2019).

Three years ago, residents of Komodo Island had to take a four-hour sea journey to access bank services in Labuan Bajo. The fare of the round trip by boat was Rp 60,000 per person, not including lodging fees.

There are 44 inhabited islands out of around 1,100 islands in East Nusa Tenggara. However, only a handful of islands were touched by banking services. The residents had to go to Kupang, Maumere, Waikabubak or Labuan Bajo. Digital bank services were not popular because internet and cell phone signal was limited.

Before the bank services were available, residents of Komodo Island sent money outside East Nusa Tenggara by post. Not infrequently they entrusted the money to the crew of a boat which would sail to Java or Kalimantan. "Sending money was held only by the capital of trust," recalled Ahmad Makadau, a trader from Komodo Island.

A solution was badly needed to open broader access to financial services. Without it, the problem of poverty is increasingly difficult to overcome. The percentage of poor people in East Nusa Tenggara is the third highest nationally after Papua and West Papua.

KOMPAS/KARINA ISNA IRAWAN

One of the stalls selling typical souvenirs of East Nusa Tenggara operates an electronic data reading machine at Komodo International Airport, East Nusa Tenggara, Friday (26/7/2019). The facility makes it easier for local and foreign tourists to shop.

Reaching the islands

To solve the problem, the banking industry started to reach small islands around Labuan Bajo at the end of 2016. Bank services, which were usually available in physical buildings, can now be carried out on ships. Boats go from island to island to serve residents.

The innovation was launched by Bank Rakyat Indonesia (BRI) through the Bahtera Seva II Ship Terrace service. The ship sails to seven islands around Labuan Bajo, namely Komodo, Rinca, Papagaran, Mesa, Boleng, Seraya and Longos. On each island, the ship berths one day a week. The bank services available on the ship are the same as in conventional banks, from 8:00 a.m. to 5:00 p.m. local time.

Not only that, the ship owned by BRI helps move the wheels of the economy around Labuan Bajo. Residents can apply for micro-loan facilities with low interest. Alias, a customer of BRI Labuan Bajo Ship Terrace, has a loan of around Rp 50 million. The money is used to develop the business of trading souvenirs with the typical characteristics of Labuan Bajo.

"Now I am a collector, no longer carrying things from people. Loan interest imposed by the bank is low so profits are greater," said Alias.

The Bahtera Seva II Ship Terrace in Labuan Bajo as of June 2019 had collected savings of Rp 9.4 billion and channeled loans of Rp 11 billion. The micro loan ceiling is set at Rp 200 million.

Besides Labuan Bajo, other BRI ships also operate in the Thousand Islands in Jakarta and Halmahera, North Maluku. The banking services on ships will also be expanded to Anambas Islands regency in Riau Islands province, in December 2019. “The financial inclusion needs solutions to answer every problem in the community,” said BRI president director Suprajarto.

KOMPAS/PRIYOMBODO

Foreign tourists arrive at Pede Beach after having a tour to a number of islands in Komodo National Park, Labuan Bajo, West Manggarai regency, East Nusa Tenggara, Thursday (1/8/2019).

Inclusive finance is beginning to have an impact on residents in East Nusa Tenggara. Owners of grocery stalls, souvenir shops and gift shops at airports, markets, up to the sidewalk of the highways, already use electronic data reading machines (EDC). The facility makes it easier for local and foreign tourists to shop.

In archipelagic regions such as East Nusa Tenggara, banking services have helped accelerate the distribution of goods. The faster the money is sent, the sooner the order is delivered. "The prices of rice, eggs, sugar and instant noodles here are almost like Jakarta. Prices go up if the costs for sending the goods rise," said Maryati, a resident of Labuan Bajo.

Based on data from Statistics Indonesia (BPS), inflation in East Nusa Tenggara was consistently below the national level in the 2016-2018 period, when inflation in the province averaged 2.51 percent, while the national average was 3.25 percent. Inflation is dominated by transportation, communication and financial services.

KOMPAS/KARINA ISNA IRAWAN

Bahtera Seva II, which is operated by Bank BRI, berths at Labuan Bajo Port, East Nusa Tenggara, Thursday (25/7/2019). The boat is used to provide banking services for residents living in coastal areas and small islands.

Now, access that has been limited for decades has begun to open. The presence of bank services on ships strengthens the residents\' determination to improve their welfare.