Higher state income could, in turn, promote the realization of numerous infrastructure projects where, again, Indonesian banks would be able to play a substantial role considering their increased capacity. The purpose of Pillar 2 of API is to enhance the quality of bank regulations and has succeeded in establishing Regional Banking Research Institutions (LPRD) in a number of chosen regions.
As of now, LPRD have been established in collaboration with four regional universities, namely Andalas University in Padang, Brawijaya University in Malang, Hasanuddin University in Makassar, and the North Sumatera University in Medan. The resultant 16 research papers comprise of studies that address the necessities of each specific region.