The agenda of the so-called “benchmark visit” of Indonesian banks included visits to and special lectures at the Rheinischer Sparkassen- und Giroverband (Rhineland Savings Banks Association – RSGV), the Landesbank Hessen-Thüringen (Helaba) and the Bundesanstalt für Finanzdienstleistungsaufsicht (Federal Financial Supervisory Authority – BaFin). The delegation visit, which took place at the end of April 2016, was an integral part of the programme for executives of the Indonesian Banking Development Institute (LPPI). The Sparkassenstiftung für internationale Kooperation (Savings Banks Foundation for International Cooperation) was actively involved in organising the visit to Germany.
During their stay, the Indonesian executives informed themselves about the business model and the organisation structure of the German Sparkassen-Finanzgruppe (Savings Banks Finance Group) as well as about the functioning of the German savings banks associations and Landesbanken as central clearing institutions and service providers. The visiting programme was rounded off by lectures on the current regulation of banks in Germany and Europe.
The comprehensive and intensive discussions reflected the enormous interest of the Indonesian experts in the work of the German Sparkassen (savings banks) and the functioning of the German financial sector. For that reason, Sparkassenstiftung and LPPI agreed on a closer cooperation in the field of training and further education. In addition to the exchange about professional issues, new business ties were established between the German Sparkassen-Finanzgruppe (Savings Banks Finance Group) and single Indonesian banks, serving as potential link for a further international cooperation.
Sparkassen-Finanzgruppe (Savings Banks Finance Group) as model
Since 2010, the Sparkassenstiftung für internationale Kooperation (Savings Banks Foundation for International Cooperation) has cooperated with Indonesia’s regional development banks (BDPs), their umbrella association and the Indonesian financial supervisory authority. The main goal of cooperation is to strengthen the regional development banks and enhance the offer of financial services with a special focus on rural regions. The focus here is on introducing microloans for small-scale entrepreneurs and strengthening the BDPs’ umbrella association.
Following Sparkassenstiftung’s successful project work on site, the LPPI as Indonesia’s leading banking academy became strongly aware of the German Sparkassen-Finanzgruppe (Savings Banks Finance Group). According to LPPI, the German Sparkassen (savings banks) serve as a model and benchmark for Indonesian banks, because they offer financial services to broad segments of the population on a sustainable and countrywide scale and thus contribute to the economic development.
The German Sparkassen-Finanzgruppe (Savings Banks Finance Group) in Indonesia
Due to the economic significance of the country, various institutions of the German Sparkassen-Finanzgruppe (Savings Banks Finance Group) are actively involved in Indonesia’s commercial international business, apart from Sparkassenstiftung as non-profit organisation. The Landesbank Baden-Württemberg (LBBW) has a representation office in Indonesia. Furthermore, the Landesbank Hessen-Thüringen (Helaba) has been involved in this market segment through its representation office in Singapore since Mai 2015. In addition to that, Helaba is also in charge of business activities in Indonesia within the scope of S-CountryDesk, the international network of the German Sparkassen-Finanzgruppe (Savings Banks Finance Group).
With its some 225 million inhabitants, Indonesia is the economic heavyweight of the Association of Southeast Asian Nations (ASEAN). In 2015, its gross national product (GDP) was about some 900 billion US dollars, its nominal GDP amounted to 3,500 USD per capita. The Indonesian economy proved to be resilient against the global negative impacts of the financial and economic crisis of 2008/2009. Following several years of growth, though, Indonesia’s GDP decreased to under 5 % in 2015. Yet, according to forecasts for 2016 not only the Indonesian government and the central bank, but also the International Monetary Fund expect the Indonesian economy to grow again.
For more information about Sparkassenstiftung´s project in Indonesia, please, follow the <link http: www.sparkassenstiftung.de en projects projekt foerderung-eines-dezentralisierten-finanzdienstleistungsangebotes-der-regionalen-entwicklungsbanken _blank>link<link http: www.sparkassenstiftung.de projekte projekte-listedetails projekt foerderung-eines-dezentralisierten-finanzdienstleistungsangebotes-der-regionalen-entwicklungsbanken _blank>
Contact partners:
Thorsten Bosker / Carina Lau
Sparkassenstiftung für internationale Kooperation
Simrockstraße 4
53113 Bonn
Phone: +49 228 9703 6633 / 6608
Fax: +49 228 9703 6613