Various programs have been initiated to enhance community welfare, including those aimed at improving the people's economy. These efforts have not only been taken up by government but also by NGOs. One of these efforts is through the design of various kinds of rural credit and savings like Kupedes, Simpedes, cooperatives or via microfinance programs like SAADP. This edition of the SMERU newsletter presents the issue of microfinance in Indonesia, especially microfinance that can be accessed by the poor.

Since 2000 SMERU has undertaken several studies on small credit and micro credit. From the findings and observations of SMERU's field research on microfinance and credit, we present articles on various aspects and problems of microfinance, including: the background and problem of microfinance in general, the socio-economic impact of SAADP in Sulawesi as well as the implementing institution and involvement of women in that project. We also invite readers attention to an interesting article on the need for microfinance services in NTT.

Our guest writer, Krisna Wijaya, a banking practitioner from BRI, completes this edition with his article on "The Success Story of Kupedes and Simpedes"; while Yohanes Ghewa from INCREASE in NTT explains the need for facilitation and assistance in order to empower the potential of self-reliance community groups in the implementation of micro credit programs in Kupang. Many problems of microfinance have been identified and many lessons cited, the steps that follow are to ensure that microfinance services can reach their ultimate objective, namely as the primary source of capital for micro and small enterprises as well as the means to support efforts to reduce poverty.