Penguatan Permodalan Bank Perkreditan Rakyat (BPR) dan Strategi Pengembangannya (Empowering Working Capital Rural Credit Bank and its Strategy)

Abstract

The existence of Rural Credit Bank (BPR) is so important to serve Small and Medium Scale Entrepreneurs (SME-s), who have not been taken into account by formal financial institutions, especially commercial banks. The competitive BPR performances include rapid service and simple administration procedures, and the interest rate is relatively high. BPR still has limited working capital to develop its operations because its legal initial capital only Rp. 50 million. Therefore, it needs the strategy to empower and develop its business, and this should be supported by increasing its working capital, qualified human resource, setting up network, restructuring, supervising and managing system and creating infratructure.The strategy should be followed by the endogenous force in each BPR.