2ND BRI/KUPEDES SMAL

closed

BRI's (Bank Rakyat Indonesia) Unit Desa system represents a program that is totally consistent with the government's financial sector policy reforms aimed at efficiently increasing resource mobilization and improving resource allocation. To date, BRI's small credit and savers scheme has proven efficient and profitable and has had significant socioeconomic benefits. It is the only nationwide network that serves a large group of small borrowers and savers whose access to competitive, nonsubsidized credit and savings facilities, in the absence of this program, would be limited. The primary of this Second BRI/KUPEDES Small Credit Project is to promote BRI's ongoing efforts to strengthen and expand its Unit Desa system as a financially viable subbranch network that mobilizes resources and provides nonsubsidized credit nationwide to creditworthy small borrowers. The project is comprised of three components : a) a credit component for general purpose financing in all sectors (to finance cottage and small-scale enterprises including manufacturing, agriculture, trade and services); b) a capital expenditure component for the expansion of BRI's five Unit Desa training centers, including computer equipment; and c) technical assistance aimed at supporting ongoing efforts to strengthen BRI's institutional capability for improving its Unit Desa and rural banking activities.