Kiva conducts regular, ongoing monitoring of all Lending Partners, but only posts status updates here in response to relevant, major changes at the partner.

Status Update - November 1, 2019
MUK's final loans with Kiva have ended in default, and this partnership is now closed. Kiva’s partnership with MUK began in 2007 and for most of this time, MUK exhibited a good repayment record with over 2,000 loans to MUK’s borrowers repaid, totalling more than $2m. Unfortunately, MUK began to experience serious financial difficulties in late 2016 which was initially caused by an inability to access short-term liquid assets. This had a knock-on effect on MUK’s ability to fund its microfinance operations leading to a protracted cycle over the past three years. Kiva has been working with MUK to try to recover the remaining outstanding amounts due to Kiva lenders. After contracting the services of an external debt collection agency earlier this year, our present assessment is that this Lending Partner is unable to make further payments, and thus the remaining $122,439.25 has been defaulted. If Kiva is able to recover any additional funds from MUK, they will be applied to lenders' accounts on a pro-rata basis. Kiva is very grateful for the support from our lenders and we understand it is disappointing to experience a loan default. We will endeavour to learn from this experience and we hope you will continue to support Kiva’s Lending Partners and their borrowers in future.

Status Update - July 29, 2019
MUK remains delinquent in its repayments to Kiva and given the length of time that has passed Kiva has contracted the services of an external debt collection agency to help retrieve lenders’ outstanding funds with MUK. This agency will make contact with the partner soon and we will provide more details on this page as we know more about the likelihood of recovery of funds.

Status update — December 15, 2017
Kiva continues to actively monitor MUK's evolving financial situation, however the organization continues to struggle to access liquid assets and has not made any progress toward repaying the overdue amount owed to Kiva lenders. Kiva also has yet to be able to establish a repayment plan whereby MUK agrees to repay the amount owed, but we hope that in time, as MUK's financial situation evolves, they will be able to begin repaying the amount owed. We thank lenders for their patience and will share updates on this page as they become available.

Status update — April 5, 2017
Due to a current inability to access liquid assets, such as cash or short-term borrowing, MUK has been unable to make repayments to Kiva lenders on repayments made by Kiva borrowers, and therefore their delinquency rate on Kiva is currently 84.73%. MUK has not been fundraising for new loans on the Kiva platform since September 2016 and Kiva is actively monitoring MUK's evolving financial situation. We will continue to work with them to determine a repayment plan in order to recover payments due to Kiva lenders, and will provide additional information to lenders as it becomes available.

Partner description:
KOPERASI MITRA USAHA KECIL (Micro Enterprise Partners Cooperative), or MUK, is a microfinance institution on the island of Bali in the country of Indonesia and is the sister organization of long-standing KIVA partner DINARI Foundation. MUK was created in 2009 out of a new Indonesian legal obligation to separate its financial lending operations from the non-profit social programming offered by DINARI Foundation.

MUK provides services to all lower income people throughout Bali, without consideration of race, religion or culture. They assist small businesses and their owners by providing training, business consultation and loans, with the intention of increasing profits thereby enabling the owners to better provide daily needs, education and services for themselves and their families. MUK offers both individual and group “Trust Bank” loans.

MUK Vision and Mission

Mission: To increase public awareness of environmental issues and to provide opportunities for people in chronic poverty to improve their lives.

Vision: A world that is prosperous and free from poverty.

Values: Love, Compassion, Equality, Transparency, Integrity and Credibility.

Commitment: To serve and help the poor.

Strategy: To empower people, create jobs, stimulate small business, and strengthen communities.

Motto: Your partner to success.

 

DINARI Foundation

In addition to the micro loans offered through MUK, DINARI Foundation offers robust social program covering:

1. Environmental Preservation

2. Community Development

• Improving infrastructure of roads and bridges and supporting building and church renovations

3. Social Services

• Providing support to victims of catastrophes such as the Bali bombings or the Yogyakarta earthquake.

4. Health Program

• Focused on empowering poor women through health training, providing extra food for children under the age of 5, and assisting pregnant or breastfeeding mothers.

5. Animal Husbandry and Agriculture

• This program serves pig and cow breeders in Bali’s Badung and Jembrana regions with business consultation and training to improve business management, loans to increase production and veterinary services as needed.

6. Business Training

• Providing general business consulting and training for a variety of businesses and life skills that are mentioned in the programs above.

Partners

MUK is well positioned in the industry within Indonesia and southeast Asia and has partnered with numerous organizations around the world including Tearfund (New Zealand), Opportunity International Australia (OIA), Opportunity International Deutchland (OID), Habitat for Humanity (Jakarta, Indonesia) and HIVOS (Netherlands).

DINARI Foundation is one partner of Opportunity International Network (OIN-Chicago)