Today was the last class of my MBA.
On the last class my lecturer talked about Bank Perkreditan Rakyat. A small bank which loans up to 1 Million rupiah the rough equivalent of US$ 100 at the time of writing. The debtors are usually people on rural areas, and some of the BPR only lend to women living in poverty. I’ve read the case study of Grameen Bank of Bangladesh founded by M. Yunus a couple semester back, but hearing how it works in Indonesia are quite different and personal.
A lady borrowed Rp. 100.000,- ($10) from the loan sharks, bought a couple hands of banana, carry it over to the market and sells it for a profit of Rp.50.000,- to Rp. 60.000,- ($5-$6). They give back to the creditor Rp.130.000 ($13) to the creditor only keeping only Rp.20.000 to Rp.30.000 ($2-$3)