Rural Bank (BPR)

An overview of TLMs Rural Bank

Inside the rural bank

Inside the rural bank

The TLM BPR offices
The BPR Office, Kupang

BPR Establishment

Consecutive legislation in 2001 and in 2004 passed by the Indonesian Government prohibits Foundations from providing Microfinance services after 2007. TLM conducted a study and found that a Rural Bank was the best formal financial institutation structure that will support TLM to continue providing microfinance services to the poor. A feasibility study was then completed in 2006 to understand the existing market and future operations of the BPR

BPR Objectives

The objectives of the BPR include:

  • Allowing TLM to meet new government regulations governing the provision of Microfinance services
  • Allowing the use of client savings as funds for loan disbursements
  • Expanding the services of TLM to include additional financial products and services, including voluntary savings and loans for more affluent individuals. This will assist with future sustainability of the TLM

BPR Performance

BPR TLM has been operating since February 2008 with 21 staff. BPR Performance as at the end of 2009:

Item
2008
2009
Active Borrowers
493
730
Loan Outstanding (Rp)
16,519,571,000

33,407,730,000

Number of Active Savers
2,108
3,916
Client Savings (Rp)
17,217,085,358
32,141,089,000
Equity
5,097,231,103
7,859,280,000
Asset (Rp)
22,598,479,363
41,059,738,000
Number of Office
1
1
Number of Staff
23
27