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

Abstract

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. Strengthening potential key microfinance players was crucial to achieving the project’s objectives. Twelve independently-operating rural banks owned by the Aceh Provincial Government were well positioned to provide microfinance services in remote areas of the province.