Rural Bank


Bank Perkreditan Rakyat (BPR, or Rural Bank) is a bank that carries out its business activities conventionally or based on Sharia principles without providing services in payment transferring.

BPR’s activities are much narrower than those of commercial bank because BPR is prohibited from providing demand deposit, foreign exchange business and insurance.

BPR’s business activities

Here are some businesses that a BPR may perform:

  • Gather fund from society in the forms of time deposit, savings, and/or other forms equal to those.
  • Give credit.
  • Provide financing and fund placement based on Sharia law and according to provisions stipulated by Bank Indonesia.
  • Place bank’s fund in the form of Bank Indonesia Sertifikat (SBI, or Bank Indonesia promissory notes), time deposit, deposit certificate, and/or savings in other banks.​


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