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Like other Acehnese in Indonesia, Lamcot villagers saw their lives severely affected by the gigantic tsunami two years ago. Among the people busy rebuilding their lives is Siti Affah, 47, a mini entrepreneur who sells her home-made traditional Acehnese rice cakes. Her business was supported by a micro-credit loan from a rural bank that employed Grameen Bank's model, now famous for the Nobel peace prize recognition.

Siti teamed up with seven other village women to access micro-credit loans made available through the $8.5 million microfinance program, established in May 2006 by the Asian Development Bank and BRR Aceh-Nias, the Indonesian government agency established to support rehabilitation from the disaster. Her group received Rp. 4 million loans in the first stage, roughly $55 each, as well as training. These women repay on weekly basis, and once they finish paying back all the loans within four moths, they can apply for larger loans.

"My capital was limited (before), so I could not stock supplies. So, when there was a special order, I often had to say no," said Siti, who makes deep-fried crispy sweets called Karah from rice flour, cassava, sugar and others. As people eat it at special occasions like wedding, she sometimes had big orders which she missed because she couldn't afford stocking up rice and fuel in bulk. "This loan allows me to (keep) stock." Now that she can buy subsidized fuel in bulk, she doesn't have to wait in line for fuel as frequently as before. "It also allows me to save on time, so I can produce more." Since her income has increased steadily, now she takes home 20% more than she used to.

For one of Siti's seven children, Nur Ani (18), the added family income opened up a new opportunity that she couldn't think of before: Going to college. Studying computers and communications at a college now, she's planning for her future. "I hope to get a job, so I can help my sisters and brothers get an education. I can share my salary with my mom, to help the family," she said.

Siti's group has become so successful that their delicacy is now a specialty of Lamcot. These female entrepreneurs are planning to expand their business to meet the increasing demand with bigger micro-credit loans in the future.

For further inquiries on 'Voices of Asia', please e-mail to Sachiko Sakamaki at JRO: ssakamaki@adb.org

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