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Cooperative Pioneer

Girl Power

Tuesday, February 27, 2001

Credit without collateral has long been the norm in East Java. It was introduced by a group of pioneering women.

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A foreign bank in Jakarta is currently offering unsecured loans. But that’s nothing new. A system of loans without collateral has been up and running in East Java for many years now. And it works. It’s not a bank that’s offering the loans sans guarantee, though. Rather a cooperative that was started by a group of women that was formerly an arisan, a social gathering in which members take turns at winning pools of cash.

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