Definition
Microfinance is financial services to micro-entrepreneurs and low-income communities.
Microfinance institutions of formal, semi-formal and informal financial institutions conducting financial services to micro-entrepreneurs and the low / poor.
Microfinance institutions in Indonesia consists of two groups: formal microfinance institutions and informal details of the type covered by the following:
Write the existence of informal micro-finance institutions in rural / urban as below:
Rural Financial Institutions Fund (LDKP) is Microfinance Institutions (MFIs) to non-bank established by governments at the provincial level since 1970 and generally operate at the district level. LDKP established under provincial legislation and under the supervision of the province concerned BPD.
Village Credit Institutions (BKD) is Microfinance Institutions (MFIs) in Indonesia's oldest, most established in the 1930's and 1940's and does not have a legal entity.
Although not listed as a RB, Bank Indonesia treats BKD as BPR and supervision under the BRI. BKD primarily operates in Central Java and East Java.
Institutions for Community Productive Economy (LEPM) is a cooperative that serves informal loans to its members, where each LEPM has about 50 members.
Credit cooperatives are a form of credit union development and operating mostly in Java, Bali and North Sumatra.
Baitul Maal Tamwil (BMT) is a form of "cooperative" that uses rules and informal rules of Islamic law in its mechanism of action. BMT is generally established by members of mosques in Java and South Sulawesi.
Village Savings and Loans Unit Economics (UED-SP) is owned by MFI development promoted by the Ministry of the Interior since 1995.
Place Services Savings and Loans (TPSP) is heading savings and credit services in
village level under KUD.
Including gathering groups that have a savings and loan business, and so that functions as an institution that provides financial services to members of the public.
