KB Bank Mass Layoffs: OJK Provides Explanation

Jakarta - The Financial Services Authority (OJK) has spoken out regarding the mass layoffs at PT Bank KB Indonesia Tbk. (BBKP), known as KB Bank. The Chief Executive of Banking Supervision at OJK, Dian Ediana Rae, stated that the bank owned by Kookmin Bank must first consult with the authority. Furthermore, the layoffs must be carried out in accordance with laws and regulations. Dian said he received information that KB Bank would conduct retraining and relocation for employees of the South Korean-owned bank entity. However, he stressed that there must be no dispute between employees and KB Bank. “Usually in private banks, and I think state-owned banks are the same, there will be a win-win solution between employees and the bank. So far, disputes are rare, especially in rationalisation conditions,” Dian revealed at the DPR RI Building on Wednesday (17/6/2026). According to him, in a rationalisation programme, the bank must already allocate funds for compensation and other related costs. Furthermore, Dian said KB Bank is undertaking a turnaround programme from human resources to technology. Dian cited the use of new IT to become more responsive to credit demand, especially in the MSME segment. “And handling other issues as well, I think it is already on track,” he said. As previously reported, KB Bank recorded a significant reduction in employees and branch offices. Based on the company’s financial report as of 31 March 2026, the total number of permanent and non-permanent KB Bank employees was 2,265 people. This number has drastically decreased, dropping by 662 people from 2,927 people in the same period the previous year. Meanwhile, the number of KB Bank sub-branch offices totalled 120 units in the first quarter of 2026, a reduction of 21 units from 141 units in the same period the previous year. Along with the reduction in sub-branch offices, the number of branch offices increased by 1 unit from March 2025 to 29 units in March 2026. The number of ATMs also grew rapidly to 154 units during the first three months of this year, from only 31 units in the same period the previous year. At the board of directors level, KB Bank’s Retail Director, Robby Mondong, recently submitted his resignation on 3 June 2026. The resignation occurred just eight months after he was appointed as a director of the company at the Extraordinary General Meeting of Shareholders on 6 October 2025. Previously, Robby had been Deputy President Director of KB Bank since June 2021. Besides Robby, Compliance & Risk Director Dodi Widjajanto also submitted his resignation on the same date. He had held that position since December 2022. According to KB Bank President Director Kunardy Darma Lie, the workforce optimisation and branch network adjustment are part of the ongoing transformation being carried out by the bank. This is being done to build a stronger, more adaptive, and sustainable organisation. “This step is taken by considering changes in customer needs, the dynamics of the banking industry, and the increasing adoption of digital services,” Kunardy told CNBC Indonesia on Monday (8/6/2026).