When Size Matters: Improving Microfinance Outreach in Aceh through a Revitalized Provincial Rural Bank Network

Publication | November 2009

The Asian Development Bank-assisted Earthquake and Tsunami Emergency Support Project aimed, among others, to develop sustainable and responsive financial services for micro and small enterprises in Aceh in Sumatra, Indonesia.

Highlights

  • Energizing rural banking in Aceh to support small and micro enterprises was a prominent feature of the Earthquake and Tsunami Emergency Support Project in Indonesia.
  • The project strengthened rural banking by assessing 12 rural banks, facilitating mergers, setting up standards for banking operations, providing improved supervision and guidance, and advocating partial privatization.
  • A strengthened provincial rural bank network is now a key player in efforts to reduce poverty and foster economic growth.