West Java Provincial Government Aims to Establish West Java Sanggabuana Holding by August

Bandung, West Java (ANTARA) - The West Java Provincial Government is targeting the establishment of the West Java Sanggabuana Holding, a consolidation of regional state-owned enterprises (BUMDs), by August 2026, to consolidate assets and strengthen regional investment structures.

The Regional Secretary (Sekda) of West Java, Herman Suryatman, affirmed that this major step has undergone a feasibility study with a team of experts from the Burhanuddin Abdullah Center (BA Center) and has also been deemed feasible by the Ministry of Home Affairs.

“The result is that, according to the study, it is feasible to establish the holding,” said Herman at the Gedung Sate Bandung, West Java, Wednesday.

However, in this scheme, Herman ensured that PT Bank Pembangunan Daerah Jawa Barat and Banten (Bank BJB) will not be merged into the holding.

This decision was made considering BJB’s status as a systemic bank and a public company listed on the stock exchange.

“BJB will not be included in the holding because it is a systemic bank and has become a public company (IPO), so the mechanism is different,” said Herman.

The initial stage of this consolidation will focus on nine non-financial sector BUMDs.

Meanwhile, for the other 28 financial sector BUMDs, the West Java Provincial Government is still conducting intensive consultations with the Financial Services Authority (OJK).

This holding establishment is a response to an internal evaluation by the West Java Provincial Government, which found weaknesses in the aspects of investment analysis and asset optimization in several regional companies.

To support this policy, the West Java Provincial Government will soon submit two Draft Regional Regulations (Raperda) to the West Java Regional People’s Representative Council (DPRD), namely the Draft Regional Regulation on the Establishment of the Holding and the Draft Regional Regulation on Capital Participation.

“The final decision rests with the Governor and the DPRD in accordance with the legal and regulatory mechanisms. Our principle is, the sooner the better, but we must still comply with the rules,” said Herman.