KSPPS Lumbung Artho

With a loan of EUR 13,000 Lumbung Artho can support its local artisans and preserving this traditional livelihood.

  • Local partner investment
  • 1 new job
  • 4 people reached



12 months



Annual interest
Fully funded in 1 day on 24 July 2017.
+ 38 other investors

Jepara, Central Java, Indonesia is famous as the centre of Javanese teak wood carving. Teak or Tectona grandis grows fast in this fertile area of volcanic soil. Jepara produces typical household items such as tables and bookcases, as well as exotic and specialised products such as mosque pulpits and calligraphy carvings. Jepara wood art exhibits a distinctive style of harmonious design.  The sector employs approximately 80,000 people, working in mainly small-scale shops. These small shops account for about 95% of total sector production. The livelihoods of millions of people in Java depend on these small shops and its value chain. 

Jepara’s wood carvers face problems of increasing wood scarcity compounded by competition from large companies with sophisticated global logistics some of whom benefit from illegal logging. These threaten good local forest management and small local businesses. Lumbung Artho hopes that with better access to capital, local producers can hold their own against increasing local and global pressure on both their businesses and their natural resources.

Lumbung Artho is a Savings and Loans Cooperative where 95% of its members are the small craftsmen of Jepara. Through its partnership with Nusa Makmur, Lumbung Artho funds the wood-carving industry preserving and developing carving talent and manual woodworking skills passed down the generations, thereby protecting local employment, communal skills and local management of local natural resources. Lumbung Artho has been partnership with Nusa Makmur since December 2014 with unblemished on-time repayments since its first drawdown.

Lumbung Artho Cooperative was first established by Mr. Abdul Wahid Badri, the Commissioner of the Cooperative, to support the Al-Islah Foundation for orphans and the poor during the 2009 economic crisis with capital from community members. From this humble start, Lumbung Artho now has 2 branch offices with 4,300 members. The cooperative now funds local woodcraft businesses and continues to support the Foundation with 30% of its yearly profit, which in 2016 increased 244.73% (to Rp. 136 million). Lumbung Artho seeks new funding to support its local artisans and preserving this traditional livelihood. Through the generations, craftsmanship inherited from their ancestors has been their art and their livelihood.

Company nameKSPPS Lumbung Artho
CEONurul Khafid
SectorFinancial services

Impact of this project

  • With this investment 1 job is created
  • With this investment 4 people are reached

About the investment

TypeLocal partner investment
IssuerNusa Makmur
Funding target€13,000
Annual interest3.50%
Maturity12 months
Repayment periodSemiannually
Terms and conditionsShow
Note termsDownload

About the risks

What are the risks of investing money?

The risk level depends on the specific project. Local partners cover the risk of currency exchange rates and defaults on Local Partner investments. They do this by maintaining financial reserves for this purpose. Aside from that, there is an option to claim their equity if needed. While these measures are intended to minimize the risk to investors, our local partners face risks of their own that could affect their ability to secure your investment. These include - bankruptcy - currency exchange rates - fraud - operational risks - political and regulatory changes - natural disasters or epidemics.

With direct investments, risks of default are not covered. As the risks are higher, so are the interest rates.

There is also some operational risk at Lendahand. An example might be that Lendahand is unable to find shareholders to finance their activities. In such a case, Lendahand will handle outstanding investments at the best of its ability. At the same time, our ability to legally address non-payment from local partners becomes understandably difficult.

How does Lendahand minimize the risks?

Every local partner must share our social mission to ensure local entrepreneurs can access affordable financing, allowing them to grow their business. Local partners must also have a 'track record'; they must have proven themselves as a reliable credit provider for SMEs.

For instance, this means a solid credit portfolio and enough buffers and equity to compensate for unexpected downturns. We also check the organizational structure of the portfolio company and how robust their (internal) procedures are. Finally, the investments must be in proportion to the total balance of that portfolio company. A healthy balance between effectuating influence and being independent is crucial. If you would like to receive more information on the financial indicators we employ, please contact us via

When currency exchange risks become too high for a local partner, Lendahand will urge the local partner to cover these risks. In some scenario's the local partner is contractually obliged to comply with these demands.

Lendahand will always conduct due diligence when companies request funding. To provide more insights on risks, an independent party comes in to perform an analysis of direct loans. The results can be downloaded on the project detail page of the direct loan. However, this analysis serves primarily as a tool for your own opinion and conclusion. Pay attention to the fact this analysis is not investing advice.

Does Lendahand provide a guarantee?

Usually we don't. Local partners take care of the repayment, even if (some) entrepreneurs are unable to do so themselves. If the local partner is for some reason unable to repay then there is a chance of partial or full loss of your money. For this reason, Lendahand only selects financially solid partners based on strict criteria.

For most direct investments, there is no guarantee. However, currency risks are covered.

Sometimes, and only for some direct investments in Africa, our partner Sida, part of the Swedish government, will guarantee a maximum of 50%. Read here more about guarantees with Sida. Projects with Sida guarantees are indicated explicitly on the project page.

Does Lendahand have a license or exemption?

Yes. The Dutch Authority Financial Markets (AFM) has provided Hands-on B.V. (with trade name 'Lendahand') in September 2016 with an investment firm license in accordance with article 2:96 of the Financial Markets Supervision Act (Wft). Placing orders on Lendahand's website is therefore an AFM regulated activity. Lendahand also meets its minimum capital requirements of EUR 125,000 following its license as required by De Nederlandsche Bank (DNB).

Lendahand uses an exemption from an approved prospectus that is available up to EUR 5 Million per year. 

How safe are my personal details?

We adhere to strict safety requirements concerning private and payment details. All sensitive data is sent through an encrypted connection (https). Also, information is stored (encrypted) in a secured facility provided by AWS: the world’s largest hosting service. A secured connection and multi-factor authentication can only retrieve customer documents.

What happens if the local currency devaluates?

Our local partners and companies bear the exchange rate risks. We settle the investments, redemptions, and interest payments in euro.

Does Lendahand use a third foundation fund?

Lendahand works with Intersolve EGI: a Dutch financial institution specializing in payment settlement and electronic money. To be able to offer these financial services, Intersolve EGI must comply with the applicable financial legislation. Intersolve EGI is therefore supervised by De Nederlandsche Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) and owns a license to act as an Electronic Money Institution (and therefore also has a license as a Payment Institution). Your money will be deposited on a protected and secure bank account until the project you have invested in has been fully funded. Intersolve has no access to these funds. Once the project is fully funded, the money is transferred to the local partner or company in question.

What happens with my money if Lendahand goes bankrupt?

If Hands-On BV (containing the brand name Lendahand) went bankrupt, trades between Lendahand and payment service provider Intersolve EGI would cease immediately. Intersolve will then transfer the funds in your wallet to your bank account (Note: if at this time the project you have invested in has been fully funded and the money has thus been transferred to the local partner, these funds will not be transferred back to your bank account). Intersolve will then, in consultation with a trustee, handle all repayments between the investors and entrepreneurs until the final repayment of the last project has taken place.

Additionally, Lendahand is part of the investor compensation scheme (ICS). This scheme aims to compensate individuals and small businesses with trusted money and or financial instruments (such as notes or options) to a licensed bank, an investment firm, or a financial institution. In case the financial firm is unable to meet its obligations arising from claims related to the investment service (in other words, if Hands-On BV is not keeping track of the acquired notes by investors in the Wge depot correctly). The ICS guarantees an amount of up to €20.000 per individual. For more information, go to

Why is Intersolve EGI handling my money?

As part of the AFM license for investment firms, it is required that operational activities carried out by Lendahand (maintaining the website, contracting of local partners, legal issues, etc.) are strictly separated from financial transactions (payments made through the website). Intersolve takes care of the costs. This collaboration offers you more security since your money is placed on a protected bank account immediately after making your payment.

What happens when a local partner goes bankrupt?

When a local partner goes bankrupt, there’s a chance you’ll lose (part of) your money. Lendahand will try to recover outstanding payments, but the success rate is limited in such situations. For you, as an investor, there’s no possibility of taking action against the financial institution. Therefore, it is recommendable to choose several different projects.

About Nusa Makmur

Portfolio Overview€1,270,649
Equity / total assets9.60%
Write-off ratio last 12 months0.13%
% investment amount in arrears (>90 days)0.00%

We have already contributed for KSPPS Lumbung Artho

Bas Kleijnen
+ and another