Case Study
Developing Financial Services for Microenterprises: An Evaluation of USAID Assistance to the BRI Unit Desa System in Indonesia
Has USAID's Financial Institutions Development Project-Phase II achieved its objectives?
99 pages
FID II provided training systems, operations and policy technical assistance to Bank Rakyat Indonesia to support transformation of the bank's 3,000 subsidized sub-district branches (Unit Desa) into self-sustaining, profitable financial intermediaries.
This paper describes Unit Desa model and assesses its financial performance and developmental impact. Finds system performing well, but may face challenges as it matures. It includes lessons learned and issues for replication.
It further evaluates contribution of FID II to development of Unit Desa.
Finally the paper concludes:
- FID II project inputs have enabled BRI to build a solid policy foundation, effective staff training system and improved operational systems;
- Given FID II project is complete, BRI is now positioned to move into next stage of Unit Desa development without USAID assistance;
- USAID should consider options of providing technical assistance to developing rural financial markets elsewhere in Indonesia.
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