Micro Credit Financing and Poverty Alleviation in OIC Member States

Istanbul, July 9-11, 2007

ISMANTOBANK RAKYAT INDONESIA

BUSINESS LANDSCAPE (2006)BUSINESS LANDSCAPE (2006)BUSINESS LANDSCAPE (2006)BUSINESS LANDSCAPE (2006)

Source: Kompas, August 11, 2006

7.9 mio(15%)

MSEs85%

Medium + Big Corporates

15%

MSEs Medium + Big Corporates

(44.8 mio)

(7.9 mio)

Number of Business Units (57.7mio)

Objectives

Financially-Literate Community

Knowledge

Needs/Wants

Purchasing Power

ACQUIRE

Problems

1. Low level of education2. Limited financial literacy skills3. Lack of managerial skills4. Limited access to business

expansion

Customer’s Profile

Borrowers: 3,176

381

324

1,723

422 517

ES JHS SHS BC MS DC

Savers: 2,908

169 270

1,862

8155010

The biggest market

in consumerbanking

The biggest market

in consumerbanking

BRI UnitSustainability &

Profitability

BRI UnitSustainability &

Profitability

Promotion Promotion

Marketing Below

the Line

Marketing Below

the Line

Image Image

Care forCommunity

Care forCommunity

CSR CSR

•Understanding banking products & services•Having access to BPS

•Understanding banking products & services•Having access to BPS

Financially-Literate

Community

Financially-Literate

Community

Borrowers Borrowers

•Enhancing Knowledge & Skills•Marketing•Business Expansion

•Enhancing Knowledge & Skills•Marketing•Business Expansion

Image Image

1) Banking Products and Services

2) Debt Management

3) Savings

4) Marketing Strategies

5) Business Development

6) Cash Flow Management

1) Qualified Trainers

2) Adequate budget (Donors)

3) Training Design and Curriculum Development

4) Participant selection

5) Transportation and Accommodation

Monitoring

1) BRI

2) Partners

3) Donors

Assessment Criteria

1) New product acquisition

2) Increasing no. of repeated loans

3) Clients’ business expansion

4) Clients’ turn-over

5) Student customers