BRI bank

Although everyone knows that banks are profit oriented, there are limits of decency that have to be observed. A true story about the BRI Bank in the small town of Kudus shows that the bank staff can go too far. The parents of a good friend of mine contacted the BRI to borrow a certain amount of money. They needed this to help their daughter in Jakarta. Bank staff visited their modest home and agreed to the loan. The parents were told to give their only valuable possession, a property document, as guarantee to the bank.

However before the contract was signed, the parents heard good news from Jakarta: the loan was not needed anymore. They told the bank so, but the staff tried their utmost to offer a loan anyway.

The smooth talking staff persuaded the non-educated family to agree with a much smaller loan, under false pretenses. The BRI staff tempted the poor family with a seemingly attractive offer, which was agreed upon.

Although the amount of the loan was much lower than the original request, they still insisted on receiving the property document as guarantee. Now the small family business is forced to pay back a loan that was thrust down their throats, with the risk of losing their only possession if they are not able to pay it back on time. The pre-tax profits of the BRI Bank almost doubled from 1992 to 1993. Guess why.

A.J. BRANDT

Jakarta