Bank Rakyat Indonesia (BRI); Indonesia (Case Study)

Using Bank Rakyat Indonesia (BRI) of Indonesia as a case study, this paper presents the findings of the Consultative Group to Assist the Poor (CGAP) on savings mobilisation. The paper:

• Reviews the macroeconomic context of Indonesia, the financial sector, and the social and cultural context;
• Undertakes institutional analysis of the BRI Unit Desa system, particularly of its characteristics, governance and organisational structures;
• Explores its demand-oriented savings products and technologies. Specifically looks at the characteristics of a set of four deposit instruments (SIMPEDES, TABANAS, DEPOSITO, and GIRO) designed to meet different types of demand.

The author concludes that BRI's success in savings mobilisation is based on:

• Providing a well-conceived combination of what small savers want and need: safety, convenience, liquidity and positive yield;
• Combining the advantages of proper market segmentation and integration, and eliminating the disadvantages of either approach.

[Adapted from the author's abstract]