OJK Reveals Major Challenges for Regional Development Banks, Including Budget Dependency

The Chief Executive of Banking Supervision at the Financial Services Authority (OJK), Dian Ediana Rae, stated that Regional Development Banks (BPD) have successfully overcome capital issues, which represent one of the toughest challenges in the banking sector. One method of addressing these capital challenges is through Bank Business Groups (KUB). “However, there are still issues related to the Regional Revenue and Expenditure Budget (APBD). If regional income is high, this will naturally be easier to achieve. If it is low, it will be difficult to achieve,” Dian revealed at the Regional Bank Summit 2026 themed “Strategic Transformation of BPD in Driving National Development” on Wednesday (5/8/2026). Beyond capital, competition in the Indonesian banking world is not easy, especially for regional banks that must compete with national banks. However, Dian assured that the OJK supports efforts to continuously enhance the role of BPD. From a human resources (HR) perspective, BPDs must also compete with national banks to attract the best talent. Nevertheless, Dian hopes BPDs can continue to make improvements, for instance by providing the best compensation to employees. “So, we must indeed continue to improve HR, which is included in the BPD Roadmap, because we consider this to be one of the most important aspects alongside IT improvements,” Dian stressed. He noted that HR and IT are equally important, therefore the digital transformation of BPDs is being pushed seriously and continuously, supported by the BPD development roadmap for 2024-2027. “This roadmap was created so we can ensure BPDs grow with good progress. I think this is not an easy challenge, given the current global and domestic economic situation,” Dian concluded.