{
    "success": true,
    "data": {
        "id": 1684431,
        "msgid": "with-many-advantages-bpd-urged-to-elevate-its-status-1776433850",
        "date": "2026-04-17 20:09:51",
        "title": "With Many Advantages, BPD Urged to Elevate Its Status",
        "author": "",
        "source": "TEMPO_ID",
        "tags": "",
        "topic": "Banking",
        "summary": "The Association of Regional Development Banks (ASBANDA) is pushing for Regional Development Banks (BPD) in Indonesia to transform into proactive orchestrators of local economic funds amid fiscal constraints and shifting economic landscapes. Highlighting BPD's unique advantages like proximity to local governments and deep understanding of regional economies, ASBANDA Chairman Agus Haryoto Widodo advocates for innovative financing strategies, including optimised regional loans to boost public services, UMKM development, and sustainable growth. Central Java Governor Ahmad Luthfi emphasised the need for collaborative efforts, positioning BPD as key drivers in supporting investments, economic stability, and community welfare.",
        "content": "<p>Changes in the economic landscape and limitations in local government\nfiscal space demand that Regional Development Banks (BPD) take on a more\nstrategic and proactive role. Moving forward, BPDs can no longer merely\nserve as managers of local government funds. \u201cBPD must transform into\norchestrators of regional fund flows capable of actively and sustainably\ndriving the economy,\u201d said ASBANDA Chairman Agus Haryoto Widodo at the\nNational Seminar on Regional Development Banks across Indonesia, held in\nSolo and attended by Central Java Governor Ahmad Luthfi recently. BPDs,\nhe continued, possess structural advantages not held by other banks,\nfrom closeness to local governments and understanding of local economic\ncharacteristics to networks reaching down to the district level. With\nthese advantages, BPDs hold a unique position to play a larger role in\ndirectly driving regional economies. \u201cBPD must ensure that every rupiah\ncirculating in the region adds economic value, boosts productivity, and\nstrengthens the real sector,\u201d he stated. Agus said that local fiscal\nlimitations should not hinder development. In such conditions, financing\ninnovations become key to maintaining the continuity of government\nspending and regional economic growth. One strategic instrument being\npromoted is the optimisation of regional loan schemes, not only focused\non infrastructure financing but also on strengthening public services,\nimproving the quality of health and education sectors, and developing\nUMKM and the local economy. \u201cRegional loans must be viewed as strategic\ninstruments to create a multiplier effect for the regional economy, not\nmerely short-term financing sources,\u201d said Agus. In this context,\nASBANDA has also submitted proposals to regulators for a more precise\npolicy approach to public sector financing at the local level. \u201cThis is\nnot a request for relaxation, but an effort to present a more\nappropriate framework so that public sector financing can be carried out\noptimally yet prudently,\u201d he said. To elevate BPDs, Agus stated that the\ntransformation will focus on three main pillars: strengthening\ngovernance and risk management, developing productive and impactful\nfinancing innovations, and deepening roles in the regional economic\necosystem. According to him, BPD\u2019s future success will not only be\nmeasured by financial performance but by its contribution to driving\ntangible regional economic growth. \u201cThe future of the regional economy\nis not only determined by the size of the Regional Budget (APBD), but by\nour ability to manage and direct fund flows to create sustainable\ngrowth,\u201d he said. Meanwhile, Central Java Governor Ahmad Luthfi stated\nthat regional development requires cross-stakeholder collaboration.\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. He also emphasised the importance of BPD\u2019s role in\nsupporting regional investments, maintaining economic stability, and\nstrengthening the real sector, particularly UMKM. BPD, he said, must be\npresent as a solution to various regional economic challenges, from\nfiscal limitations to improving community welfare. The seminar is\nexpected to serve as a strategic momentum to accelerate BPD\u2019s\ntransformation into more modern, adaptive, and impactful regional\nfinancial institutions. Moving forward, BPDs are hoped not only to be\nfinancial intermediaries but also engines of inclusive and sustainable\nregional development.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/with-many-advantages-bpd-urged-to-elevate-its-status-1776433850",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}