{
    "success": true,
    "data": {
        "id": 1684491,
        "msgid": "asbanda-urges-regional-development-banks-to-elevate-their-role-as-orchestrators-of-local-economic-growth-1776433858",
        "date": "2026-04-17 20:00:45",
        "title": "ASBANDA Urges Regional Development Banks to Elevate Their Role as Orchestrators of Local Economic Growth",
        "author": "",
        "source": "DETIK",
        "tags": "",
        "topic": "Banking",
        "summary": "The Chairman of the Regional Development Banks Association (ASBANDA), Agus H. Widodo, has called for a fundamental transformation of Regional Development Banks (BPD) in Indonesia, shifting them from mere managers of local government funds to active orchestrators of regional economic growth through innovative and productive financing. Speaking at a national seminar in Solo attended by Central Java Governor Ahmad Luthfi, Agus highlighted the banks' structural advantages, such as proximity to local governments and understanding of regional economies, to drive productivity and support sectors like UMKM and public services amid fiscal constraints. This push emphasises optimising regional loan schemes for multiplier effects and focuses on three pillars: governance strengthening, financing innovation, and deeper integration into local economic ecosystems, aiming to measure success by tangible contributions to sustainable development rather than just financial performance.",
        "content": "<p>The General Chairman of the Regional Development Banks Association\n(ASBANDA), Agus H. Widodo, is urging Regional Development Banks (BPD) to\nundertake a fundamental transformation of their roles. BPDs need to\nshift from merely managing local government funds to becoming\norchestrators of regional fund flows and the primary drivers of regional\neconomic growth through productive and measurable financing innovations.\nHe emphasised that changes in the economic landscape and limitations on\nlocal government fiscal space demand that BPDs take on more strategic\nand proactive roles. \u201cGoing forward, BPDs cannot suffice with just\nmanaging local government funds. BPDs must transform into orchestrators\nof regional fund flows capable of actively and sustainably driving the\neconomy,\u201d stated Agus. He delivered these remarks at the National\nSeminar on Regional Development Banks across Indonesia in Solo, which\nwas also attended by the Governor of Central Java, Ahmad Luthfi.\nFurthermore, Agus explained that BPDs possess structural advantages not\nheld by other banks, ranging from closeness to local governments,\nunderstanding of local economic characteristics, to networks reaching\nthe district level. With these advantages, BPDs can play a larger role\nin directly driving the regional economy. \u201cBPDs must ensure that every\nrupiah circulating in the region adds economic value, boosts\nproductivity, and strengthens the real sector,\u201d he asserted. Agus\nstressed that local fiscal limitations should not hinder development. In\nsuch conditions, financing innovation is key to maintaining the\ncontinuity of government spending and regional economic growth. One\nstrategic instrument being promoted is the optimisation of regional loan\nschemes. This scheme is not only focused on infrastructure financing but\nalso on strengthening public services, improving the quality of health\nand education sectors, as well as developing UMKM and the local economy.\n\u201cRegional loans must be viewed as a strategic instrument to create\nmultiplier effects for the regional economy, not just a short-term\nfunding source,\u201d clarified Agus. In this context, ASBANDA has also\nsubmitted proposals to regulators for a more precise policy approach to\nfinancing the regional public sector. \u201cThis is not a request for\nrelaxation, but an effort to provide a more appropriate framework so\nthat public sector financing can be carried out optimally yet\nprudently,\u201d he emphasised. To elevate BPDs, Agus stated that the\ntransformation will focus on three main pillars. First, strengthening\ngovernance and risk management. Second, developing productive and\nimpactful financing innovations. Third, deepening roles within the\nregional economic ecosystem. According to him, the future success of\nBPDs will not only be measured by financial performance but by their\ncontributions to driving tangible regional economic growth. \u201cThe future\nof the regional economy is not only determined by the size of the\nregional budget, but by our ability to manage and direct fund flows to\ncreate sustainable growth,\u201d he said. Meanwhile, Central Java Governor\nAhmad Luthfi, in his keynote speech, affirmed that regional development\nrequires collaboration across stakeholders. \u201cBuilding a region cannot be\ndone alone. We are not supermen, but a super team. Everyone must\ncollaborate to drive regional economic growth,\u201d he explained. He also\nemphasised the importance of BPDs\u2019 role in supporting regional\ninvestment, maintaining economic stability, and strengthening the real\nsector, particularly UMKM. In his view, BPDs must be present as\nsolutions to various regional economic challenges, from fiscal\nlimitations to improving community welfare. The holding of this seminar\nis hoped to become a strategic momentum to accelerate the transformation\nof BPDs into more modern, adaptive, and impactful regional financial\ninstitutions. Going forward, BPDs are expected not only to serve as\nfinancial intermediation institutions but also as the engine of\ninclusive and sustainable regional development.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/asbanda-urges-regional-development-banks-to-elevate-their-role-as-orchestrators-of-local-economic-growth-1776433858",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}