Case Study

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

What are the essential components of a rural APEX bank in Indonesia?
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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.

About this Publication

By Heupel, W.
Published