Emphasising People's Economy, Luthfi Asks Bank Jateng to Prioritise KUR
This was conveyed at a seminar themed ‘Strengthening the Role of BPD as a Strategic Partner of Local Governments through Financing Innovation and Regional Loans’ at the Sunan Solo Hotel in Surakarta City on Friday (17/4/2026).
“In Central Java, I emphasise KUR for the people’s economy at Bank Jateng. We must revive the people’s economy by providing low-interest KUR,” said Luthfi in a written statement on Friday (17/4/2026).
According to him, this policy is expected to protect the public from the clutches of online loans (pinjol) and high-interest moneylenders.
Luthfi emphasised that regional development banks (BPD) must take on a larger role as drivers of the regional economy. Not only carrying out administrative banking functions, but also supporting the people’s economy, encouraging investment, and strengthening development financing.
He assessed that regional development can no longer rely solely on the fiscal capacity of the government. With limitations in APBD and central transfers, local governments are compelled to be more creative in seeking new sources of growth, one of which is through investment and strengthening the role of regional banks.
“We are not supermen who can do everything. So we are a super team, therefore we collaborate with everyone to build a region,” he said.
Luthfi noted that the portion of APBD and APBN entering the regions is fundamentally limited. Therefore, regional development needs to be supported by investment, backed by assurances of security, order, legal certainty, ease of licensing, workforce readiness, and industrial zone development.
Bank Jateng’s President Director, Bambang Widiyatmoko, in his remarks, stated that the decline in transfers to regions should be a momentum for BPD to strengthen their strategic role in development financing.
“In 2025, Bank Jateng has disbursed regional government credit amounting to Rp330 billion. In 2026, we are adjusting the allocation for regional loans from Rp330 billion to Rp1 trillion,” said Bambang.
He added that BPD cannot merely act as a conduit for credit ceilings but must also serve as partners to local governments in ensuring projects run on time, including through cash flow projections and financing oversight.
Meanwhile, the Chairman of the Regional Development Banks Association, Agus H. Widodo, emphasised that BPD must level up.
“BPD must level up, no longer positioned merely as a parking place for local government funds, but should elevate to become active managers of regional fund flows, guardians of regional liquidity stability, and primary drivers of regional economic growth,” said Agus.