The government of Indonesia has added 13 existing banks to the Association of Regional Development Banks (Asbanda) to distribute microcredit across the country. The 13 banks include: PT Bank DKI, PT Bank Nagari, PT Bank Jabar Banten, PT Bank Jateng, Bank BPD DIY, PT Bank Jatim, PT Bank NTB, PT Bank Kalbar, BPD Kalsel, PT Bank Kalteng, PT Bank Sulut, PT Bank Maluku, and PT Bank Papua.

This expansion is part of the government-run Kredit Usaha Rakyat (KUR) program, which aims to develop the country’s microfinance sector. The main goal of the KUR program is to encourage commercial banks to expand their services into the microfinance sector by providing government guarantees.

By: Stefanie Rubin, Research Assistant

About Kredit Usaha Rakyat (KUR):

Established in 2008, the Kredit Usaha Rakyat (KUR) program aims to provide Indonesian farmers with access to credit. Through KUR, working capital and investment credit are provided to microfinance institutions by commercial banks. The loans are guaranteed by the state credit system.

Additional Resources:

Source Article: Berita Jakarta: “Government adds 13 More Regional Development Banks to Distribue Micro-Credit,” http://www.beritajakarta.com/2008/en/newsview.aspx?idwil=0&id=13760

MICROCAPITAL BRIEF: Indonesian Government Relaxes Rules of Its Microfinance Program, Kredit Usaha Rakyat (KUR): http://www.microcapital.org/microcapital-brief-indonesian-government-relaxes-rules-of-its-microfinance-program-kredit-usaha-rakyat-kur/