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It was at the East-West Center that Dunham met Lolo Soetoro, a student from Indonesia. They married in 1966 or 1967 and moved with six-year-old Barack to Jakarta, Indonesia, just after the unrest surrounding the ascent of Suharto. In Indonesia, Soetoro worked as a government relations consultant with the American petroleum company Mobil
Dunham then pursued a career in rural development championing women’s work and microcredit for the world’s poor, with Indonesia’s oldest bank, the United States Agency for International Development, the Ford Foundation, Women's World Banking, and as a consultant in Lahore, Pakistan. While at the Ford Foundation she developed a model of microfinance which is now the standard in Indonesia, a country that is a world leader in micro-credit systems. Peter Geithner, father of Tim Geithner (who later became United States Secretary of the Treasury in her son's administration), was head of the foundation's Asia grant-making at that time. Dunham also worked with leaders from organizations supporting Indonesian human rights, women's rights, and grass-roots development.