A Thorough Examination of the Role and Opportunities of Regional Development Banks in Boosting the National Economy
Jakarta, CNBC Indonesia — The Financial Services Authority (OJK) continues its efforts to advance the regional development bank (BPD) industry, notably through the 2024-2027 Roadmap for Strengthening Regional Development Banks, which covers various supporting aspects to guide BPDs in realising a vision of being resilient, contributive and competitive.
BPDs play a strategic role in supporting development and economic growth at both the regional and national levels. As regional financial institutions, BPDs serve as the government’s main partner in managing regional finances whilst also channelling financing to productive sectors.
The BPD industry’s performance remains sound, with good financing quality reflected in gross and net Non-Performing Loan (NPL) ratios of 3.26% and 1.27% respectively. This shows that expansion continues amid economic dynamics and a more prudent approach.
BPDs are also strengthening risk management through the application of prudential principles in credit disbursement, enhanced post-disbursement monitoring, and the establishment of adequate reserves in accordance with regulations, thereby maintaining asset quality.
Meanwhile, in efforts to strengthen their institutions and increase their contribution, BPDs are now being encouraged to pursue capital consolidation through the Bank Business Group (KUB) scheme, accelerate digital transformation, and optimise their role in promoting regional economic self-reliance and growth.
To discuss the direction of BPD transformation further, CNBC Indonesia is proud to host the Regional Bank Summit 2026 under the theme “Strategic Transformation of BPDs in Driving National Development”, on Wednesday, 5 August at 12.30 WIB.
This strategic discussion forum will bring together regulators, BPD leaders and stakeholders to deliberate on the institutional transformation of BPDs and their tangible contribution to supporting national development priority programmes.
The Regional Bank Summit 2026 will feature various speakers, including the President Director of Bank Jakarta, Agus Haryoto Widodo, and the President Director of Bank Jatim, Winardi Legowo. Also taking part is Dian Ediana Rae, OJK’s Executive Head of Banking Supervision.
The Regional Bank Summit 2026 is supported by Bank Jakarta and Bank Jatim. Keep following cnbcindonesia.com and CNBC Indonesia TV for updates on the economy and business.