Bank NTT to Become a Regional-Owned Company, DPRD and Provincial Government Discuss in Plenary Session

The East Nusa Tenggara (NTT) Regional People’s Representative Council (DPRD) and the NTT Provincial Government (Pemprov) held a plenary session to discuss changing the legal form of Bank NTT from a limited liability company (PT) to a regional-owned company (Perseroda). NTT Governor Emanuel Melkiades Laka Lena stated that this change will impact regulatory adjustments over the next 10 years. The local government, he said, will make policy adjustments to achieve the set targets. “If the regulations meet the required targets, but if not, we will make adjustments,” said Melki on Thursday (9/4/2025). He explained that with the status change to Perseroda, it is hoped that Bank NTT’s performance will improve while providing larger dividends to the local government and shareholders. However, he acknowledged that the first year will be a difficult period. “Their financial reports will not be presented as they are, and the real condition of Bank NTT. And indeed, we will face pain in the first year,” he said. However, Melki emphasised that the target for next year is expected to reach dividends above Rp 200 billion. He hopes this transformation will bring positive impacts to Bank NTT and NTT as a whole. “We will push this transformation; in the first year, we will feel the pain, but in the future, we hope for dividends to the province and all shareholders,” he added. Bank NTT Becomes Perseroda, Focus on Financing to Build NTT. Bank NTT Director Charlie Paulus explained that Bank NTT will become a Perseroda with the majority of shares held by the NTT Local Government (Pemda). This change will not alter the operations and supervision of Bank NTT, as it is already regulated by the Financial Services Authority (OJK). “The important thing is that this change shows a clear identity that this bank belongs to the region,” said Charlie. With 51% of shares held by Pemda, control over Bank NTT remains in the hands of the local government. As a Perseroda, Bank NTT’s focus is on financing and activities that support the development of NTT. “By becoming a Perseroda, our focus in financing and other activities will be solely on the region to build NTT,” he added. The government through the Coordinating Ministry for the Economy, said Charlie, has allocated Rp 300 billion for People’s Business Credit (KUR) and Rp 50 billion for migrant workers, totalling Rp 350 billion. “We are waiting for the signing process with the Coordinating Minister for the Economy, which is ongoing,” he stated. “There are many internal matters that need to be fixed first, after that, it will become our programme, and the potential is huge. The structural and procedural changes at Bank NTT are in the adjustment process,” explained Charlie.