Jakarta (ANTARA) - The Association of Regional Development Banks\n(Asbanda) is encouraging Regional Development Banks (BPDs) to become the\nprimary drivers of regional economic growth through productive and\nmeasurable financing innovations.<\/p>\n
Asbanda General Chairman Agus H. Widodo stated that changes in the\neconomic landscape and limitations on local government fiscal space\ndemand that BPDs take a more strategic and proactive role, rather than\nmerely serving as managers of local government funds.<\/p>\n
\u201cGoing forward, BPDs cannot merely act as managers of local\ngovernment funds. BPDs must transform into orchestrators of regional\nfund flows capable of actively and sustainably driving the economy,\u201d\nsaid Agus in a statement in Jakarta on Friday.<\/p>\n
At the National Seminar on Regional Development Banks across\nIndonesia held in Solo on Friday, Agus emphasised that local fiscal\nlimitations should not hinder development.<\/p>\n
In such conditions, financing innovations are key to maintaining the\ncontinuity of government spending and regional economic growth.<\/p>\n
He also stated that one strategic instrument being promoted is the\noptimisation of regional loan schemes, not only focused on\ninfrastructure financing but also for strengthening public services,\nimproving the quality of the health and education sectors, as well as\ndeveloping MSMEs and the local economy.<\/p>\n
\u201cRegional loans must be viewed as a strategic instrument to create a\nmultiplier effect for the regional economy, not just a short-term source\nof financing,\u201d explained Agus.<\/p>\n
Asbanda has also submitted proposals to regulators to introduce a\nmore precise policy approach to financing the local public sector.<\/p>\n
\u201cThis is not a request for relaxation, but an effort to provide a\nmore appropriate framework so that public sector financing can be\ncarried out optimally while remaining prudent,\u201d he stressed.<\/p>\n
Furthermore, to elevate BPDs, Agus conveyed that transformation needs\nto focus on three main pillars: strengthening governance and risk\nmanagement, developing productive and impactful financing innovations,\nand deepening their role in the regional economic ecosystem.<\/p>\n
\u201cThe future of the regional economy is not only determined by the\nsize of the Regional Budget (APBD), but by our ability to manage and\ndirect fund flows to create sustainable growth,\u201d said Agus.<\/p>\n
On the same occasion, Central Java Governor Ahmad Luthfi affirmed\nthat regional development requires cross-stakeholder collaboration.<\/p>\n
\u201cBuilding a region cannot be done alone. We are not supermen, but a\nsuper team. Everyone must collaborate to drive regional economic\ngrowth,\u201d he said.<\/p>\n
Luthfi also emphasised the importance of BPDs\u2019 role in supporting\nregional investments, maintaining economic stability, and strengthening\nthe real sector, particularly MSMEs.<\/p>\n
According to him, BPDs must be able to present solutions to various\nregional economic challenges, from fiscal limitations to improving\ncommunity welfare.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/regional-development-banks-urged-to-drive-economy-through-financing-innovations-1776437456", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }