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Bank Rakyat Indonesia
Bank Rakyat Indonesia was set up on December 16th, 1895 at Purwokerto, Central Java, Indonesia. It was formed
with the merger of Bank Prekreditan Rakyat and the Algemeene Volkscredietbank. BRI was formed with the motive to
provide rural banking services with an emphasis on the promotion of agriculture development. In 1946, it was declared
as the first Government owned bank of Republic of Indonesia...
Rural Financing: KUPEDES
In the year 1983, the BIMAS program was discontinued. During this period the Government scrapped 32 out of the
36 subsidized credit programmes. This raised doubts whether the Government completely shifted its focus from
priority sector agricultural lending to the commercial, market oriented rural finance. Under the subsidized BIMAS credit
program, Rp 2.55 trillion were lent over a 14-year period, averaging Rp 182 billion per year (approx. $100 million) an
unknown portion of which flowed into nonagricultural activities...
Deposit mobilisation mechanism: ‘Savings as a source of funds’
Since 1984, BRI vigorouslymobilized savings at village levels. In 1986 it launched SIMPEDES, a voluntary savings
product that helped in mobilizing huge deposits. SIMPEDES offered a safe, convenient and liquid savings
instrument that paid depositorsmarket-based interest rates. It allowed savers for anytime withdrawal of their deposited
money. The savings plan evolved from market surveys of villagers and its design was refined through pilot studies. Its
purpose was to meet the needs of rural organizations and households who demanded high liquidity. To mobilize
deposits, banks used creative approaches. They identified potential savers and advertised their services, visited
customers and established links with village chiefs and community leaders. There was a wide response ranging from
village treasuries and government offices to religious institutions...
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