Sharing of International Best Practice for the Establishment of BPR APEX Institution in Indonesia

This document presents a comparative study of the rural banking industry in Ghana and Indonesia, including the ARB APEX Bank Ltd. as well as the regulatory and supervisory institutions.

The study:

• Compiled relevant information of the present set up of the ARB APEX Bank Ltd. in Ghana;
• Met with Indonesian research teams to mutually exchange knowledge in Indonesia;
• Consulted local stakeholders for better understanding of the Indonesian context and demand;
• Drafted the concept study with some financial projections in terms of the APEX institution's business viability and sustainability.

The study examines:

• Rural banking and the ARB APEX Bank Ltd. in Ghana;
• International best practices of APEX;
• Rural banking in Indonesia.

The study concludes that:

• The creation of a rural APEX institution is feasible and necessary;
• The APEX institution must be a bank with branches;
• It would need government and donor technical and financial support initially;
• Not all rural banks may be able to pay the full costs of APEX services;
• External technical assistance and a thorough fading out scenario planning will be crucial for the success of the rural APEX bank.

The study recommends:

• A detailed feasibility study and business plan;
• The evolution of rural banks as major shareholders in the APEX bank;
• External support for supervision;
• Improvement in training and consultancy.