OJK Urges Regional Development Banks to Adopt Community Approach for MSME Growth

Jakarta, CNBC Indonesia - OJK’s Chief Executive of Banking Supervision, Dian Ediana Rae, has said Regional Development Banks (BPD) are being encouraged to develop and open up access for micro, small and medium enterprises (MSMEs). He explained that OJK is currently undertaking a major overhaul of MSME credit distribution going forward, so that it can be more easily accessible and better targeted.

“We will be more concerned with ecosystem development. Because we must not let credit to MSMEs fail to empower them, and instead become a burden at some point because it turns into bad credit,” Dian said at the Regional Bank Summit 2026 with the theme “Strategic Transformation of BPDs in Driving National Development”, on Wednesday (5/8/2026).

For this reason, OJK is currently balancing MSME growth with quality. Moreover, MSME credit distribution is directly linked to the mission of BPDs as engines of regional growth.

“This is very important to pay attention to. BPDs must be able to see the opportunities in MSMEs,” Dian stressed.

One of the efforts BPDs can make, according to Dian, is to adopt a community bank approach. He said this method is relevant for BPDs in attracting customers.

“So it means that their closeness to the community will create a perception that the bank actually deserves them, the people in that area,” he said.

Under the community bank concept, BPDs can be actively involved in local communities, particularly MSMEs. According to Dian, this approach gives the public a sense of belonging. In implementing the concept, BPDs can look to national banks, including private ones, as examples.

“In my view, this kind of approach is important when facing competition with national banks and others. So it is not just about products, but also about what the approach actually is,” Dian explained.