Greeting From Credit Union Timor-Leste !!!

  1. Background and Justification

Federação Cooperativa de Credito Hanai Malu (FCCHM) is a secondary cooperative established by primary cooperatives in Timor-Leste for and to educate, assist and organize its members to achieve good cooperative goals. FCCHM was established through an extraordinary member’s assembly, by 29 Credit Union held on November 13-14, 2010 in Timor-Leste.

Almost ten years of FCCHM’s existence there were newly established cooperatives and there were also cooperative that had died long ago. All this happened because the education institutions established by FCCHM still lack of knowledge about planning, organizing, managing and leading good organizations.

Apart from the fact that the management did not master their duties and the supervisory board did not know how to conduct good oversight, the FCCHM itself did not yet have a standard for accounting and good control methods for primary cooperatives that were members of FCCHM. The FCCHM itself did not have enough budget to fund training and local visits.

With the problems faced by the FCCHM and based on FCCHM meeting ACCU and the Australian Mutual Foundation (AMF) in Malaysia on September, 2019 has inspired us to submit a proposal as follow:

The goal of this project is to build the institutional capacity of seventy (70) cooperatives with seventy thousand (70000) members in three (3) years. Half of the members are women and mostly from the rural areas which could provide financial services to the poorest communities.

The project is to ensure that those newly formed cooperatives will practice the cooperatives principle such as democracy, self-help and mutual support. There are cooperatives in Timor-Leste established under the previous regime and they are credit driven, not sustainable and running by volunteers. The objective of the project is to introduce a professionally running financial cooperatives which are sustainable, offering a wide range of products and services that would improve the lives of the people. This project is to provide financial support to the Federation by enabling them to perform their role which is to build the capacity of sixty (60) saving and credit cooperatives and to promote membership other financial cooperatives throughout the country.

  1. Six Credit Union in progress (History of success)

Timor-Leste is a country that has faced many problems from 2017 to the present, these problems are a political crisis that took three years, the natural disasters that rocked the city of Dili in March 2020 and COVID19 is still ongoing until now.

With the problems faced by the community mentioned above, many companies have closed down and some have laid off their employees, but for credit unions decided not to recruit employees and there were seven cooperatives that had very good growth when Timor-Leste faced the problems mentioned above, including:

  1. Credit Union ENCLAVE, is a credit union in which the country is facing credit union problems with an additional 15% of the previous number, additional capital 15% compulsory savings, and still employing employees;
  2. KUC Credit Union is a credit Union located in the city of Dili, but there is growth in members 14%, capital and does not cut off employment with employees and overall growth is 14% tie the previous year.
  3. Credit Union LANAMONA is a credit union located in a district city, member growth has reached 12% and capital growth has reached 12% from the previous one and credit union activities continue to run as usual and do not cut off working relationships with employees.
  4. Credit Union IRA-LUCA is a credit union located in the easternmost regency city with member growth reaching 10% and capital growth reaching 10% from the previous one and credit union activities that continue to run as usual and do not cut off working relationships with employees.
  5. Credit Union Maubisse Hanoin ba Futuru is a credit union located in the easternmost district city with a member growth of 6% and a capital growth of 11% compared to the previous one and credit union activities continue to run as usual and do not cut off working relationships with employees.
  6. Credit Union LEMORAI is a credit union located in the city of Dili with a member growth of 8% and a capital growth of 9% compared to the previous one and credit union activities that continue to run as usual and do not cut off working relationships with employees.
  7. Credit Union DADIRAH is a credit union located in the city of Dili with a member growth of 5% and a capital growth of 5% compared to the previous one and credit union activities that continue to run as usual and do not cut off working relationships with employees.
  8. Although there were several credit unions that had growth, however, these six credit unions had high non-performing loans

The Credit Union  become a trusted partner toward an independent cooperatives movement.

  • Mission

Increase the empowerment the cooperative movement through education and training.

  1. Objectives
  2. Leadership development through continuous training.
  3. Deploying ACCU Credit Union business solution – translated into Timorese language and training of trainers to provide training for SCC.
  4. Developing services of the Federation such as Inter-lending, Stabilization Fund and Micro-insurance.
  5. Promoting membership to other regions in Timor-Leste
  6. Training programs for building capacity of SCCs
  7. Training the staff of the Federation and providing financial support for salaries.
  8. Increasing the understanding of management and supervision of the dynamic of the member participation as the result of education of members which the indicators are:
  9. The Board to make active participating members strengthen. To build a board that has the ability to organize its members to actively participate in decision making and manage their own business well.
  10. The management of cooperative according to the interest and economic needs of its members.
  11. Disseminating cooperatives education and training for the lowest level. The indicator of the availability of sufficient quantities:
  12. Skilled and ready-to-use guide in conducting educated members. Other has the human resources that are needed to ensure the sustainability of credit union and the credibility of financial unions.
  13. Skilled and used trainers in Management and Supervision Education, Guiding Training, Training of Trainers and Workshops. Credit Unions will have managers and supervisors and staff who are competent to serve wisely the Credit Unions to achieve their defined goals.
  14. Increasing the understanding of women, cooperatives actors and community leaders about the correct cooperation with the indicators as below:
  15. The formation of cadres of women who proactively encourage their people to involve in cooperative activities at all levels. So that all people at the local and national level understand and accept the existence of credit union in its entirety.
  16. There is a positive change in the East Timor Cooperative Movement towards cooperatives with one business, where members have the same economic interest or have business links with their cooperatives. With the assistance of credit unions, people whose lives depend on government subsidies will be reduced and create communities that are present and productive both locally and nationally.



It is important to develop Micro and Small Entrepreneurship especially those existing in rural areas. WE believe that the Micro and Small Entrepreneurship can play an important role in developing rural areas which eventually can contribute to the national development. But they have not developed as cooperative. Therefore it is necessary to educate and train them to become cooperative. Only as cooperative the Micro and Small Entrepreneur can play the role of national development.

To ensure the welfare of Credit Union members, FCCHM develops a program of social inclusion and financial inclusion. through providing credit to micro groups and small businesses to build sustainable businesses and be able to return receivables regularly.

In addition to regular repayment of receivables with these loans can contribute to the economic development of Timor-Leste.




  1. Designing curriculum, learning material, media, methods and techniques based on the needs of the target group by following the development and movement of cooperatives at the national, regional and international level to:

Education of target group members of the cooperatives

  1. Management and supervisor education. The target groups are the management, supervisors and manager of the cooperatives.
  2. Guide training. The target group is members who have the potential to become cooperative cadres.
  3. Coach training. The target group is guides who have the potential to be empowered and developed.
  4. Designing and preparing topics, facilitators, methods and workshop techniques on the target group’s target by following the development of the cooperative movement at the local, national and international level. The target groups are cooperatives, women, the government officials and community leaders.
  5. Together with the local cooperative movement to form a Regional Cooperative Council which is an autonomously organization and financial. The formation of the Regional Cooperative Council has considered the potential, situation and condition of the local area.
  6. Run a partnership system at all levels where each member deposits a partner fees periodically.
  7. Form a sponsorship board at all levels. The implementation is to adjust to the characteristics of region and local area.
  8. Accommodating guides and trainer at the National, Regional and Regional Cooperatives Council, (de jure and de facto).




  1. Designing learning methods and techniques that:
  2. In accordance with the characteristics of adults;
  3. In accordance with the need of the target group;
  4. Can be understood easily ;
  5. Easy to implement (simple) ;
  6. Low cost (affordable) ;
  7. Use the network of East Timorese cooperative optimally and independently to disseminate cooperative education and training programs




Members are owners and users of cooperative services, awareness, appreciation, and guidance of members of the cooperative.  The ultimate goal is increased member participation in the cooperative effort. For this reason, standardized, programmed and ongoing cooperative education for members is needed.

The goal of member educations is to improve:


  1. Members capital contributions
  2. Awareness of members to utilize cooperative business services ;
  3. Involvement of members is decision making ;
  4. Supervision of members of their cooperatives.
  5. Awareness of members of risk management;




Member education will have an impact on increasing the knowledge, awareness, appreciation, and demands of members of their cooperation.

The ultimate goal is increased member participations in the cooperative effort. Impacts like these require the attitude and behavior of the management professional and proactive. So a cooperative, programmed, and sustainable cooperative education is needed for the management. In general, the goal is to prepare the board to be ready to anticipate the dynamics of members as a result of member education. Specifically, the management’s educational goals are to increase the understanding and skill of the board in:


  1. Managing cooperative organizations and businesses;
  2. Leading cooperative organizations and businesses;
  3. Communicating with members, supervisors and fellow management;




It is very difficult for members to supervise directly the organization and business of cooperative. For this reason, supervisors are chosen by a member meeting so that the organization and business of the cooperative can run in accordance with the mandate of the member meeting. That is because supervisors are representative member who monitor the course of the organization’s business and cooperative efforts. For Supervisory Education is needed. The aim is to increase the supervisor’s knowledge and ability about:

  1. Cooperative organization and business;
  2. Superficial technique;



At present, there are tens of thousands of cooperatives with tens of millions of members spread to remote villages. To reach such a vast territory skilled and trained guide at the district and city levels are needed to facilitate Member Education. The guide is selected from potential cooperative members. In general, the aim is to produce a skilled and used guide in Members Education. Specifically, the purpose of the Guide Training is to provide knowledge and skills to the guide on how to:

  1. Guide and manage the education of members
  2. Mastering cooperative board learning material and the media.



Guiding training, Boarding Education and Supervisory Education are carried out in various places in districts and cities throughout Timor-Leste. To be effective and efficient trainers at the district level are needed to facilitate the Management of Education, Supervisor Education and Guiding Training. The aim is to increase the trainer’s knowledge and abilities in:

  1. Guide and manage caretaker education, supervisor education, trainer training and workshops.
  2. Mastering the board’s learning material and the media.




  1. Preparation of server computer
  2. For Example: Intel Core 2 Duo/Xeon Processor and 4 GB Memory
  3. Network: Cable / Wifi and antenna/tower
  4. Local Network Provider / build yourself
  5. For Internet Online setting
  6. Internet Hosting Server (Website)
  7. Internet, LAN (cable / wifi)
  8. Internet Service Provider
  9. Operating system Introduction to FOSS and OS Blank On (Special Events)
  10. Installing the MS Window or Linux operating system (Ubuntu/Blank On)
  11. VIRTUAL PC – Oracle Virtual Box
  12. Web Server Installation: XAMP on MS Window and LAMP on Linux Ubantu
  13. Setup the application program
  14. Testing the SICUNTILES.Net application


  • COST

The cost required for education, training, assistance and installation of software are as much as $ 250,000 thousand U$ Dollar’s for a period of five years between 2021 and 2025. Complete in the appendix.

Regarding the total request, the applicants requested that the process not be concurrent but annually, so that the implementation was in accordance with the implementation program.



The person responsible for the request is the management of the SECOOP followed by the implementation of the agreement beginning with a MOU that can bind both parties. The SECOOP is responsible for delivering financial reports every three months to donors during the activity.


We dream that if this request is granted then changes and developments will occur to all cooperatives and its members. The following are targeted results of the project for 2030;


  1. Federation’s membership of 100 SCCs
  2. 70 SCCs using PEARLS –
  3. 80 SCCs with 1,000 members
  4. 50 SCCs with comprehensive policies with credit union operation
  5. 20 SCCs computerized with co banking business solution
  6. 50 SCCs w/ min. 5 savings & 5 wealth building loan products
  7. 20 SCCs with minimum staff to members ration 1:300



  1. Build staff competence on monitoring using PEARLS as tool
  2. In system standard on PEARLS reporting
  3. Marketing of CU for wide program on member get member
  4. Financial literacy training to at least 70 members SCCs
  5. Prepared tools: policies and template for system / procedures
  6. Devilment of standard SCC software
  7. Products & service modeling on financial services
  8. Competency courses for SCC staff
  9. Certification of key staff of SCCs
  10. Institutionalize Credit Union Director Competency Course
  11. Certification of Board and committees



As cooperative people, we expect that there will be a change in cooperatives and members, there is a great competition in the field of development and cooperatives and economic growth, so as cooperative people we really expect a helping hand from all parties, which are local, national and international. Thus we make this request for our collaboration and cooperative, and we thank you.



Dili, 25 February  2021

Secretariat of FCCHM