Cooperating with the Association of People's Credit Banks in Indonesia Perbarindo Jatim-LKP, CERTIF & ProFI: The Way Forward

This study develops criteria for a future cooperation with associations of small banks in general and between "German Technical Cooperation (GTZ) -"Promotion of Small Financial Institutions (ProFI)" and "Perbarindo Jatim- "Lembaga Konsultan Perbarindo (LKP)" in particular.

The study identifies the following criteria for "Perbarindo Jatim "LKP" to contribute to the development of the "Association of Rural Banks (BPR)" in East Java, and thus be a suitable partner for ProFI:

• Efficient management capacity and governance structure, a transparent business plan and a clear vision for the future;
• Consistent increase in sustainability;
• A large membership and the ownership and commitment of members;
• Knowledge of the market demand for its services;

• The study finds that:
  • Perbarindo's performance has improved over the last year , even though the indicators were not or only partly met;
  • The assistance of LKP during the introduction of CERTIF, a training program for the certification of BPR managers, was useful and successful;
  • The cooperation between LKP and ProFi should be continued.
• The study recommends the implementation of a comprehensive strategy for gradually substituting direct financial contributions with capacity building measures for Perbarindo-LKP corresponding to the gradual increase in income.