Marie Michael Library

Bank Rakyat Indonesia - Unit Desa 1970-1996

Charitonenko, Stephanie; Patten, Richard H.; Yaron, Jacob

In 1984, the government of Indonesia began an experiment in economic development. The challenge was to transform 3600 state-owned, rural branches acting as disbursement centers for subsidized agricultural credit into financially self-sustaining, microfinance intermediaries. The Unit Desa (Village Unit) system of the Bank Rakyat Indonesia self-styled its innovative management and operating procedures, thus surpassing the most optimistic hopes for its success.