Citi Microentrepreneurship Award 2007: Driving Microbusiness Growth in Eastern Indonesia

Citi
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex. Additional information may be found at www.citigroup.com or www.citi.com.

Citi Foundation
The Citi Foundation supports organizations that help people improve their lives, businesses to grow, and communities to prosper around the world. The Citi Foundation focuses its grants primarily in three areas: financial education, educating the next generation, and building communities and entrepreneurs. Additional information can be found at http://www.citigroupfoundation.com.

Citi Peka
Citi Indonesia's community initiatives are managed and run under the Citi Peka program funded by Citi Foundation. Citi Peka is unique because it not only offers funding support to local NGOs, but it also includes a strong employee volunteer program component. Indeed, the success of Citi Peka relies a lot on the enthusiastic support of employee volunteers. Citi Peka programs focus on the long-term and aim to develop and enhance education and community programs in Indonesia.


	Printer Friendly Page		FOR IMMEDIATE RELEASE Citigroup Inc. (NYSE: C) August 27, 2007 Citi Microentrepreneurship Award 2007: Driving Microbusiness Growth in Eastern Indonesia Jakarta – "Although micro, small and medium-sized enterprises account for 99% of Indonesia's 45 million businesses, growth in the micro business sector is largely confined to west Indonesia," said University of Indonesia, School of Economics Dean, Professor Bambang P.S. Brodjonegoro, Ph.D at the launch of the Citi Micro-Entrepreneurship Award (CMA) 2007. Launched in 2004, the Citi Foundation funded CMA program aims to provide opportunities for microentrepreneurs (with an annual income of less than Rp50 million) to expand their businesses. Another goal is to build relationships between microentrepreneurs and microfinance lending organizations (LKMs – Lembaga Keuangan Mikro). "This year, creating opportunities for micro entrepreneurs in East Indonesia is a focus for the 2007 program," said Mr. Peter B. Eliot, Citi Country Officer, Indonesia at the launch. "By conducting the CMA in Papua for the first time, we hope to increase the involvement of LKMs who play an important role in empowering microbusinesses in the area. As East Indonesia is resource rich, we believe programs like this can help spur sustained economic growth in the region, noted Mr. Eliot. "And through Citi Peka, we are making Rp200 million available in loans to support the best microentrepreneurs in the country. The first winner will receive Rp11 million; the runner-up Rp9 million, and Rp7 million for the third winner. The judging panel will select the top three from microentrepreneurs involved in the following sectors – farming, trade, handicrafts and the arts." Commenting on the current microbusiness environment in east Indonesia, Professor Bambang said low productivity, limited access to resources, poor organizational skills and an unfavorable business climate were some of the biggest barriers for microentrepreneurs in the region and across the country. "Papua, for example, only has three Business Development Service agencies. As well, there are few LKMs in the region. Given these factors, we really welcome Citi Indonesia's effort to expand the Citi Microentrepreneurship Award (CMA) to eastern Indonesia," said Professor Bambang. He added, "Communities in the east need more access to capital. Unfortunately, only 15% of all microentrepreneurs have access to banking with a maximum loan of Rp50 million as stipulated by Bank Indonesia." Based on current data published by State Minister for Cooperatives, there are 36,000 non-bank LKMs (in the form of savings cooperatives) and another 9,000 non-bank LKMs. Although these units are scattered across Indonesia, they only serve ten million borrowers. Registration for participation in the CMA 2007 will close on September 11. For more information, please visit the www.ukm-center.org web site or call Sri Suyatni, UKM-Center FEUI Campus UI Depok, 16424, phone (021) 727 2425, ext. 124, e-mail . The winner will be announced on November 29 at an event in Jakarta. The CMA program is a joint program between Citi Peka and NGO, UKM-Center FEUI as the program manager. Since 2005, Citi Peka has disbursed a total of US$170,000 to microenterprises in Indonesia. Citi Peka has successfully conducted a similar program in 25 provinces. # # # Citi Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex. Additional information may be found at www.citigroup.com or www.citi.com. Citi Foundation The Citi Foundation supports organizations that help people improve their lives, businesses to grow, and communities to prosper around the world. The Citi Foundation focuses its grants primarily in three areas: financial education, educating the next generation, and building communities and entrepreneurs. Additional information can be found at http://www.citigroupfoundation.com. Citi Peka Citi Indonesia's community initiatives are managed and run under the Citi Peka program funded by Citi Foundation. Citi Peka is unique because it not only offers funding support to local NGOs, but it also includes a strong employee volunteer program component. Indeed, the success of Citi Peka relies a lot on the enthusiastic support of employee volunteers. Citi Peka programs focus on the long-term and aim to develop and enhance education and community programs in Indonesia.