BPD Credit Grows, OJK Urges a Larger Role for UMKM

Jakarta – The regional development banks (BPDs) industry remains capable of sustaining growth amid intensifying competition in the national banking sector. The Financial Services Authority (OJK) notes that as at March 2026, the BPD industry continued to display solid and resilient performance, from assets, credit disbursement to funding quality. Dian Ediana Rae, Executive Head of Banking Supervision at OJK, said total BPD assets as of March 2026 reached Rp 1,036.51 trillion, up 3.20% year on year. In terms of capital adequacy, the CAR stood at 26.19%, signalling robust capital strength. In intermediation, BPD credit rose from Rp 562.85 trillion in December 2022 to Rp 656.87 trillion in March 2026, a 1.59% year-on-year increase. This growth was supported by a 4.74% YoY increase in Third Party Funds (DPK) to Rp 782.04 trillion. The figures suggest credit expansion remains prudent amid evolving economic dynamics. ‘BPD continues to strengthen risk management through the application of prudence in credit disbursement, enhanced post‑disbursement monitoring, and the maintenance of provisions in line with regulations, thereby preserving asset quality,’ Dian stated. To sustain the sector’s competitiveness, OJK is implementing the Roadmap Penguatan BPD 2024-2027, which focuses on four pillars: strengthening the structure and competitive edge of BPDs; accelerating digital transformation; strengthening the role of BPDs in regional and national economies; and improving licensing, regulation, and supervision. OJK expects that refining policy directions for BPD development and strengthening will enable the industry to grow prudently while contributing to regional development and economic equality.