Regional Governments Urged to Select Professional Figures to Lead Regional Banks

The Corruption Eradication Institution (LPK) Representative Office for Bengkulu Province has urged regional governments to select professional, transparent figures who are oriented towards the interests of the community and the region to lead the Bengkulu Regional Development Bank (BPD). This call comes after the Supreme Audit Agency of the Republic of Indonesia (BPK RI) reportedly uncovered numerous strategic problems in the operations of BPD Bengkulu under its previous leadership.

“Furthermore, there is a risk that the presentation of credit values, impairment loss charges, and profits are materially misstated (overstated) by at least more than IDR 1.6 billion,” said LPK Bengkulu Province Chairman Arafik on Saturday (20/6/2026).

Arafik continued that this figure represents a material amount that directly affects the quality of the bank’s financial statement presentation. This finding holds significant meaning as it concerns the quality of financial reporting, which serves as the primary basis for shareholders, regulators, auditors, and other stakeholders in assessing the company’s health. If credit values, loss provisions, or profits are not presented fairly, there is a risk that the company’s true financial condition is not accurately depicted.

“The BPK also found that the realisation of advertising and promotion costs reached IDR 3,980,931,927, whereas the budget stipulated in the RKAT was only IDR 2,787,775,000,” Arafik revealed.

Arafik stated that the Financial Services Authority (OJK) discovered daily financing used for the purposes of the official residences of the President Commissioner, Acting President Director, and Operational Director, which was not in accordance with the Board of Directors’ Decree No. 49/SK/D.10/2022 concerning Standard Operating Procedures (SOP). It was also found that purchases for the official residence of the President Director of BPD Bengkulu had no clear basis for their use, leading to the misuse of state finances.

“Under the principles of good corporate governance and from the perspective of sound corporate management, the management’s success in resolving auditor findings, strengthening the internal control system, improving risk governance, and enhancing compliance with SOPs should indeed be the primary attributes that prospective leaders of BPD Bengkulu must possess,” Arafik explained.

“A professional, independent figure—meaning one with no ties to political parties—and a reformist capable of completing the recommendations of BPK RI and OJK, as well as improving the company’s operational effectiveness, is an important indicator that the controlling shareholder should consider in the strategic decision-making process regarding the appointment of definitive directors,” he concluded.