Under Indonesian banking law, Indonesian banks are classified as either commercial banks or community (rural) banks (BPRs). The main difference between the two categories is that rural banks have restricted operational areas, for example, they do not provide demand deposit. With regard to the bank systems used, there are commercial banks that carry out conventional business activities and banks that observe Islamic (shariah) principles in their operational activities. BPRs activities are limited to conventional bank activities or Shariah based bank activities.
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