Video: Sources of Credit Growth and BPD Business Facing 2026 Challenges

The Financial Services Authority (OJK) continues to encourage the strengthening of Regional Development Bank (BPD) businesses to become ‘Regional Champions’ in their respective regions through transformation and business development, so they are not dependent on regional budgets (APBD) and civil servant consumer credit.

Amid geopolitical and global economic uncertainty in 2026, the BPD business is described by Bank Lampung President Director Indra Merviana as quite challenging yet manageable, with the BI Rate at 5.7% making the cost of funds for BPDs relatively expensive.

In Lampung, bank credit grew 5.3% and public funds grew 8.77%, meaning deposits grew faster than credit disbursement, indicating that business players are still holding back from expanding. During the first half of 2026, Bank Lampung recorded a profit of Rp 133 billion, or growth of 22.75%, with credit growing 9.8%, supported by an efficiency strategy and improvements to its funding structure.

From BPD Bali, Operations Director I Komang Wiratna Jaya noted that Bali’s economic growth of 5.78% year-on-year, above the national GDP, was supported by the tourism sector, including food and beverage, agriculture and transportation.

Meanwhile, credit and third-party fund growth in Bali province remains below the national banking industry average, with credit growing 6.34%, mainly from the MSME sector. At BPD Bali, credit grew 7.08%, with MSME credit reaching 13.45% and gross NPL maintained at 0.94%. BPD Bali is therefore confident that its 9% credit growth target can be achieved.

BPD Bali also confirmed that capital adequacy remains sufficient, with a capital adequacy ratio (CAR) of 20.99% as of June 2026. The bank has achieved Core Capital Group (KBMI) 2 status and is supported by an LDR that remains adequate for expanding MSME credit disbursement.