DPRD Demands Thorough Evaluation as Bandung City BPR Losses Reach Rp70 Billion
Bandung – The plan to inject additional capital into the Regional Public Company (Perseroda) BPR Kota Bandung has drawn scrutiny from the Bandung City DPRD. The proposal is being discussed amid the company’s financial condition, which continues to record losses of up to approximately Rp70 billion.
Deliberation on the Draft Regional Regulation (Raperda) concerning Perseroda BPR Kota Bandung is still ongoing in the Bandung City DPRD. However, the bank’s financial condition has become a primary concern for Special Committee (Pansus) 18 before determining policy direction for the regional government-owned company. Based on financial reports for the 2023–2024 period used as discussion material, the cumulative losses of BPR Kota Bandung are said to have reached approximately Rp70 billion.
Pansus 18 member Erick Darmadjaya assessed that this condition must be subject to serious evaluation before the regional government disburses additional capital again. “I am surprised that BPR Kota Bandung has received additional capital several times but continues to suffer losses. We must examine what is actually happening within the company,” he said.
The DPRD considers that additional capital should not automatically become the solution every time the company faces financial problems. Before approving new capital participation, the regional government and DPRD need to clearly understand the root causes of the bank’s persistent losses.
Moreover, every capital injection provided by the regional government essentially comes from the regional budget, which is public money. Therefore, its use must deliver tangible benefits for the people of Bandung City. Pansus 18 also highlighted the results of comparative studies to several regions, which showed that BPRs receiving additional capital were generally in healthy condition and had good performance prospects.
This condition is considered different from BPR Kota Bandung, which is still facing internal problems and continues to incur losses. The DPRD has requested a thorough evaluation to identify the main factors causing the bank’s performance to remain poor.
At least three issues are of concern: high levels of non-performing loans, weak implementation of prudential principles, and potential non-compliance with regulations. Additionally, the DPRD has requested that all findings and notes from the Financial Services Authority (OJK) be taken into serious consideration in determining policy towards BPR Kota Bandung.