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

The Chief Executive of Banking Supervision at the Financial Services Authority (OJK), Dian Ediana Rae, has stated that Regional Development Banks (BPD) are being encouraged to develop and open access for MSMEs. He explained that the OJK is currently undertaking significant reforms related to the future distribution of credit to MSMEs, aiming to make it more accessible and better targeted. “We will be more concerned with ecosystem development. Because we must ensure that credit to MSMEs does not fail to empower and instead becomes a burden one day due to turning into bad debt,” Dian revealed at the Regional Bank Summit 2026, themed “Strategic Transformation of BPDs in Driving National Development,” on Wednesday (5/8/2026). Therefore, the OJK is currently balancing MSME growth with credit quality. Moreover, MSME lending is directly linked to the mission of BPDs as engines of regional growth. “This is very important to note. BPDs must be able to see the opportunities within MSMEs,” Dian stressed. One effort BPDs can make, according to Dian, is to adopt a community bank approach. He believes this method is relevant for BPDs in attracting customers. “The closeness to the community will create a perception that the bank truly deserves them, the local people,” he said. Under the community bank concept, BPDs can actively engage with local community groups, particularly MSMEs. This approach, according to Dian, fosters a sense of belonging among the public. In implementing this concept, BPDs can look to both national and private banks as examples. “In my view, this kind of approach is important for facing competition with national banks and others. So it is not just about the product, but also what the approach is like,” Dian explained.