Shifting the Microfinance Paradigm

BRI’s microbanking system has served its micro clients through BRI-Unit. More than 5,000 BRI Unit offices are conveniently located in every sub-district. BRI units have served  over 22  million low-to-middle income savers and more than 5  million borrowers across this vast archipelago of Indonesia. BRI Units had disbursed USD  81  billion micro loans as of December 2010. In terms of deposit mobilization in the same period, BRI Unit total savings was USD  10.3 billion of . It is really amazing to see the difference between the lending and the savings sides of BRI microbanking.

BRI Units have been profitable every year since 1986, including the years of the Asian Economic Crisis of 1997. Financial profitability, in turn, brings social benefits. Based on the  current impact study, BRI microbanking has had positive impact to family welfare, job creation and business development of the communities. BRI Units have proven over the past 20 years that creating products appropriate for the working poor with full cost recovery is not only possible, but also profitable.