In-Depth Look at Regional Development Bank Strategies to Boost Regional Economic Independence

Regional Development Banks (BPD) have a strategic role in supporting regional economic independence. As regional financial institutions, BPD serve as the government’s main partner in managing regional finances while channelling financing to productive sectors.

Regional economic independence needs to be encouraged to reduce regional inequality and improve public welfare. Regional economic independence can also create jobs through labour absorption from MSMEs and local businesses.

Moreover, regional economic independence tends to be more resilient to global crises. Finally, it can drive sustainable growth.

BPD continue to strengthen risk management through the application of prudential principles in credit distribution, improved post-disbursement monitoring, and the establishment of adequate reserves in accordance with regulations, so that asset quality is maintained.

For the record, the BPD industry’s performance remains solid with good financing quality, reflected in gross and net non-performing loan (NPL) ratios of 3.26% and 1.27% respectively. This shows that expansion continues amid economic dynamics and a more prudent approach.

To discuss the role of BPD further, CNBC Indonesia is holding the Regional Bank Summit 2026 batch 2 with the theme ‘BPD Strategies to Drive Regional Economic Independence’ on Thursday, 27 August.

This strategic discussion forum brings together regulators, BPD leaders, and stakeholders to discuss BPD institutional transformation and their real contribution to supporting national development priority programmes.