House of Representatives Urges Regionally Owned Enterprises to Strengthen Innovation to Boost Local Revenue
Commission II of the House of Representatives (DPR RI) has called on regionally owned enterprises (BUMD) across Indonesia to strengthen business innovation and strategy in order to optimally and sustainably increase their contributions to locally generated revenue (PAD).
“BUMD must be capable of serving as the driving force of regional economies through professional, efficient management that is adaptive to business dynamics,” said Commission II member Deddy Yevri Hanteru Sitorus during the commission’s recess working visit for the Third Session Period of 2025–2026 in Banjarmasin, South Kalimantan, on Friday.
He emphasised that BUMD were established to generate revenue and deliver economic benefits to the public, making innovation and improved performance imperative.
During the meeting, Commission II also examined the performance of PT Bank Pembangunan Daerah Kalimantan Selatan (Bank Kalsel) as one of the strategically important regional enterprises.
The DPR expressed appreciation for the bank’s healthy condition, with third-party fund growth and assets showing a positive trend.
Nevertheless, Commission II urged that the bank’s intermediation function be optimised so that public funds collected can be more productively channelled to the real sector, particularly micro, small and medium enterprises (MSMEs), to strengthen regional economic growth.
According to Deddy, a number of indicators such as Return on Equity (ROE), the ratio of operating costs to operating income (BOPO), and the Loan to Deposit Ratio (LDR) must be continuously maintained to ensure greater efficiency and competitiveness compared with other regional development banks.
Commission II also encouraged the strengthening of digital transformation to expand service reach and increase fee-based income in a balanced manner alongside interest income.
The commission assessed that service innovation can improve efficiency whilst simultaneously broadening public access to banking services.
Additionally, the DPR opened opportunities for synergy among regional development banks through strategic cooperation and Joint Business Groups (KUB) to strengthen capitalisation, risk management and regional financing expansion.
The working visit formed part of the DPR’s oversight function and aspiration-gathering role, aimed at ensuring BUMD become increasingly professional, accountable and performance-oriented.
With strengthened innovation and governance, Commission II hopes that BUMD will be able to increase their contributions to PAD and support sustainable development in South Kalimantan.