August 10, 2007 / 2:29 PM / 13 years ago

Indonesia to set up microfinance firms in villages

JAKARTA, Aug 10 (Reuters) - Indonesia plans to spend 1 trillion rupiah ($107.1 million) in 2008 to set up financial institutions in villages across the country to reduce poverty and unemployment, the agriculture minister said on Friday.

The administration of President Susilo Bambang Yudhoyono, who took office in 2004, has pledged to cut chronic poverty in the world’s fourth most populous country.

“We plan to set up financial institutions in poor villages with good prospects in agriculture in 2008,” Agriculture Mininster Anton Apriyantono told reporters after a speech by Nobel prize winner Muhammad Yunus.

The Bangladeshi banker and economist and his Grameen Bank won recognition from the Swedish Nobel Foundation in 2006 for lending small sums of cash to poor traders and entrepreneurs who would otherwise not have access to traditional banking or credit facilities.

Indonesia’s fourth-largest lender, PT Bank Rakyat Indonesia

(BRI) <BBRI.JK,> is currently the market leader in the domestic loan market for small firms and in microfinancing.

($1=9340 Rupiah)

((Reporting by Mita Valina Liem; Editing by Ed Davies; Reuters Messaging:; Telp +6221 384 6364)) Keywords: INDONESIA ECONOMY/FINANCE

C Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nJAK270818

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below