This pilot project works closely with PNPM stakeholders in a clinic mode to test capacity building, MIS activities and linkages between RLFs and bank and non-bank financial institutions. The project aims to make PNPM RLFs more transparent and sustainable, to enable them to continue providing financial services to the poor. Following testing, activities are expected to be rolled out on a national scale by the GOI as a means to strengthen overall PNPM RLF operations. The project also provides support for studies, assessments and a legal review to provide strategic inputs for ongoing development of the overall PNPM RLF scheme. The PNPM RLF scheme has reached a significant scale and continues to grow, with nearly 500,000 groups, some 5 million individual borrowers, and a total asset value in excess of US$ 1 billion. The pilot is implemented among better performing and potentially sustainable RLFs in four provinces (Yogyakarta, Central Java, West Sumatra, and NTT). Together, these provinces account for approximately a third of all RLF assets.