A micro-credit program has brought clean water flowing into Rosniati’s house, and new hope for improved welfare in the city of Medan.

Medan. Rosniati, 52, the mother of nine children, lives in a modest house with wooden walls and a cement floor in Medan, North Sumatra. Over a period of two months, life had been even more difficult than usual for Rosniati’s family. “The water from our well suddenly went black, and we couldn’t use it at all. I had to ask my neighbors for water to bathe, clean up and for drinking. Sometimes I even had to take my clothes to my child’s house eight kilometers from here to wash them,” Rosniati said.

Feeling that she just had to do something about the water problem, Rosniati visited the PDAM Tirtanadi water company office in Medan to find out how to get a water service connection. ”It costs Rp. 1,340,000  million (around 100 US dollars) to hook up, and you have to pay 50 percent of that up front. How could I possibly afford that?”said Rosniati, who makes her living by selling fried snacks.

The water company then offered her the opportunity, through a referral of Rosniati to Bank Sumut, to get water services installed into her home through a micro-credit loan.  The cost of the installation remained the same, but could be paid in installments over a period of 12 months. ”This was just what I needed. My children agreed, and they are pitching in together to pay for it,” Rosniati explained.

On December 16, 2008, a week after Rosniati requested a new water service installation, PDAM installed the pipes and other necessary equipment and clean water began flowing into Rosniati’s house. Her seventh child, a son, Ridwan is taking care of making sure the micro-credit installments of Rp.92,000 per month are made regularly to Bank Sumut. The monthly water service fee of Rp. 30,000 is being covered by Rosniati’s third child, Irwan.

Now, Rosniati’s low income neighbors and others in Medan have begun following her example by signing up for micro-credit to get PDAM water services for their homes. And, since December 19, 2008, Bank Sumut has been introducing its Tirta Sejahtera Micro Credit Program to potential PDAM Tirtanadi water company customers in other parts of North Sumatra. This program appears to be a great boon to the poor communities that are in need of access to clean water.

Astuti  Nasution, ESP North Sumatera & Gusril Bahar, ESP Jakarta