Koperasi Siswa Bangsa

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©2009. Putera Sampoerna Foundation. All right reserved. Proprietary and Confidential

Koperasi Siswa Bangsa

an initiative from Putera Sampoerna Foundation

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The Putera Sampoerna Foundation

Dedicated to improving and increasing educational andeconomic opportunity, particularly for theunderclasses and women, as a means of leading socialreform to a more egalitarian, tolerant, progressive andglobally engaged nation.

Producing a new generation of leaders for Indonesia’sbusiness, government and education sectors.

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Sources :1. Kementerian Pendidikan Nasional 20092. Badan Pusat Statistik 2009 3. Kemendiknas 2009

A glimpse into the current state of education

• For most Indonesians educational tuition is highly unaffordable :

1. High school tuition :

• Public : IDR 4 million per year

• Private : IDR 40 million per year

2. University tuition :

• Public : IDR 8 million per year

• Private : IDR 65 million per year

• Rate of higher education enrolment by high school graduates is 14.7%

• 1.5 million teens drop out

– 56.4% are due to economic reasons

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The Putera Sampoerna Foundation

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Sampoerna Sponsored Students

“The brightest of the Poorest”

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Dr. Walter McMahon

Professor of Economics and Professor of Education Emeritus at

the University of Illinois in Urbana-Champaign and author of

Higher Learning, Greater Good: The Private and Social Benefits of

Higher Education, (Johns Hopkins University Press, 2009),

Winner, Best Book in Education, 2010 PROSE Award Professional

Scholarly Publishing Division of the Association of American

Publishers. In a league with Charles Clotfelter, Robert Lucas and

Paul Romer.

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Key Findings

The McMahon studies reviewed and analyzed data

from around the world, including Indonesia, and

found that for affecting income and other variables

increasing the number of bachelor degrees in

developing nations has the most rapid and

statistically measurable affects in certain benefit

areas across a society. The affects surpass the

results of governmental interventions such as

welfare and economic development.

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Benefits of Higher Education

Private non-market benefits from

higher education are also impacts on

nation-wide development. They include

contributions to:

• Better Health

• Better Child and Spousal Health

• Greater Longevity

• Child Education and Cognitive

Development

• Fewer Children, Slower

Population Growth

• More Efficient Household

Management

• Happiness

Social Benefits from higher education

are benefits to others and to future

generations. They include:

• Democratization and Improving

Civic Institutions

• Human Rights

• Political Stability

• Poverty Reduction

• Lower Crime Rates

• Environmental Sustainability

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Higher Education and GDP

Indonesia China The Philippines Malaysia Thailand South Korea

20%

40%

60%

80%

100%

$ 5,000

$ 10,000

$ 15,000

$ 20,000

$ 25,000

Source: Dirjen Dikti 2007, CIA World Fact Book 2007

17.3%20.3%

28.1%32.5%

42.7%

91.0%

GER - HEIGDP/Capita

$3,900

$7,800

$5,000

$12,800

$9,200

$24,500

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Challenge: Enfranchise Higher Education

No student loans available in Indonesia

• Typical consumer loans 3-5 year term

• No deferred repayment option

• Must be collateralized

Research by PSF

• Desirability by students and family

• Risk resistance

• Customer financial and demographic analysis

• Salary and repayment formula analysis

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Loan Program History

• 2006-2009 Pilot Student Loan program w/ IFC

– General public – limited screening

– Broad number of HEI options

Results: High number of low-non-performing loans

• Siswa Bangsa Fund 2010 from Private Donations (USD 3 Million) 170 loans

– New eligibility and screening procedures

– Capitalized by PSF through Sahabat UKM – Microfinance Bank

– 3 years from graduation

– High retention of students

• New Fund in 2011

– Capitalized by PSF, banks UBS and RZB and corporate/private social

investments

–USAID DCA guarantee facility (USD 5 Million)

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Loan System Modeling

• System must be Scalable and Sustainable

• Must manage eligibility in incoherent environment

• Develop non-traditional loan candidate selection criteria

• Exercise control and monitoring of academic activities to limit

attrition

• Establish a peer and community bond - cooperative

• Flexibility in terms and amnesty

• Multiple collection mechanisms

• Grow and expand

• Resistant to corruption

• Uncollateralized

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Dana Siswa Bangsa Key Elements

1. Repayment pegged to percentage of actual income

2. Deferred repayments until employed

3. Objective to become self-sustaining - revolving fund

– Limited eligibility and intensive screening

– 11-14 years financing term, with grace period

– No collateral required

– Optional monthly support is provided

– Loan can cover school fees / tuition and living expenses during

schooling

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Eligibility and Screening

Eligibility and Screening Process -- Intensive and Expensive

•S3 High School graduation certificate with legal RoI academic report (grade 10 to 12)

with minimum average marks of 7.00.

•Acceptance letter in selected university and program

•Social and economic review – lower quintile

Documentation requirements:

– Completed and signed Application Packages

– Certified copy of academic record from grade 10 to grade 12

– A copy of the last one month of home electricity bill (if the applicants own a house or live with

parents) or a copy of house/ room rental payments

– A certified copy of Family Card (Kartu Keluarga)

– A copy of valid National ID card (KTP/Passport)

– A copy of parent’s/ guardian’s national ID card (KTP/ Passport)

– A copy of the last one month of parent’s salary slip

– 2 References Letters consisted of one recommendation form from High School Head Master

and one Recommendation form from High School Teacher

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Selection Method

Based on multiple criteria with multiple assessors to ensure its

comprehensiveness and validity within incoherent environment

1.Round One – Application and materials review

Candidates must complete all of the registration documents. Initial assessment of

the values is based on the papers submitted that shows about their class rank,

organization experience, achievement, social activity, reference, and a personal

essay

2. Round two – Values and Resilience

Qualified candidates will be invited to the second round of assessment consisting of:

• Psychological review

– Written essay – self description

– Interview

– Group discussion observed and assessed for social dynamics

– Assess candidate’s views regarding social issues and general knowledge

about Indonesian society

– Assess candidates capacity to transcend traditional repressive social

structures

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Selection Process and Screening

Final Round

•Financial Background Check in neighborhood or village

•Integrity and character assessment

•Credit Scoring - Sahabat UKM

•SelectionTeam will conduct a random home visit to short listed candidates

All loan recipients must join the cooperative:

•Creates community of scholars and cohesion

•Provides peer monitoring students

•Offers counseling, support and advancement services

•Becomes an “alumni association” for life with local and national activities

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Organic Organization and Management

Multiple Interlocking Management Elements

•The Putera Sampoerna Foundation – Funding and support systems

•ACCESS Education Beyond – Academic screening and guidance

•Koperasi Siswa Bangsa –

– Organizational management

– Loan candidate selection process

– Student oversight

– Community of members

•Bank Sahabat UKM - PSF affiliated SME Bank regulated un ROI

– Loan processing

– Disbursements

– Collections

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Dana Siswa Bangsa Model

Donation

Loan

DonorAllowance

University

Students

Working alumni

Rep

ay

2-5 yearsContributions

The Dana Siswa Bangsa cycle provides more opportunities for more students to access quality education

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Koperasi Siswa Bangsa community

Builds Community of Scholars with a Mission - Leadership

•Builds member connections with life-long continuity

•Offers familiar structure of rites and rituals “tanggung renteng”

•Value adding services

• Job fairs

• Internship contracts

• Training and application center

• Career coaching

• Social functions and networks

• Group Community Service Projects

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• Working together with partners and donors, Siswa Bangsa provides its beneficiaries with opportunities to enhance their skills so they can reach their full potential

• The potential development programs include:– Leadership

– Social and environmental

– Entrepreneurship

– School exchange

• Students’ career enhancement program involves:– Résumé-writing workshop

– Interview preparation

– Internships

– Job placement assistance

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Potential & Career Development

Sampoerna students in UK (British Council Competition)

Lawrence Quahe Student Camp

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Future Goals and Plans

Current and projected loan activity

–360 Current loans under management

–600 Total projected next year

–1000 in next 3 years

–Increasing at 1000 per year into the future based on projections

•Future Plans and Options

–Increasing corporate and individual contributions

–Invite “angel” or social investors to participate

–Plan and test bond offering program Bond Guarantees from ADB, IFC, other

parties (Institution Issuing Bonds) Consortium of banks or individual institution

–Investors (i.e. pension funds, institutional investors)

–Seek additional international capital via internation aid organizations – JICA etc.

•Expand into middle class market

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Terima kasih dan saya sangat

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Thank You

Terima kasih dan saya

sangat

best wishes

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International MBA Scholarship Program

Schools Attended Scholar

The Wharton School at the University of Pennsylvania 3

Kellog School of Management, Northwestern University 2

Stephen M. Ross School of Business, the University of Michigan 4

Kelley School of Business, Indiana University Bloomington 2

Melbourne Business School 6

Anderson School of Management, University of California Los Angeles 1

London Business School 3

Harvard Business School, Harvard University 1

Haas School of Business, the University of California at Berkeley 2

Mays Business School, Texas A & M University 1

Manchester Business School 1

EM Lyon Business School 2

Fuqua School of Business, Duke University 1

NUS Business School, National University of Singapore 1

Macquarie Graduate School of Management 2

Krannert School of Management, Purdue University 1

Fisher College of Business, the Ohio State University 1

Columbia Business School, Columbia University 1

MIT Sloan School of Management 1

Kenan-Flagler Business School, the University of North Carolina 1

HEC School of Management 1

McCombs School of Business, University of Texas at Austin 1

INSEAD 1

Documents

Koperasi Siswa Bangsa