Indonesian Political, Business & Finance News

West Java Regional-Owned Enterprises Urged to Optimise Contributions

| | Source: REPUBLIKA Translated from Indonesian | Economy
West Java Regional-Owned Enterprises Urged to Optimise Contributions
Image: REPUBLIKA

The West Java Regional House of Representatives (DPRD) Commission III is urging the local government to take strategic steps to revitalise Regional-Owned Enterprises (BUMD) that have yet to deliver optimal performance. Such restructuring is considered vital so that the assets and companies owned by the West Java Provincial Government can provide a greater contribution to regional revenue and development.

The Chairman of Commission III of the West Java DPRD, Jajang Rohana, stated that this was a key focus during the commission’s working visit to evaluate the performance of several local government partners in Cirebon Regency on Wednesday (16/09/2026).

According to Jajang, the evaluation covered several sectors related to regional revenue. This included a review of the Regional Revenue Management Centre (P3D) in the Cirebon Regency area to monitor tax revenue developments following the determination of the Revised Regional Budget (APBD Perubahan).

“We are monitoring the development of regional revenue from the tax sector. Following the determination of the Revised Regional Budget, we hope that the established targets can be achieved,” said Jajang.

However, he noted that challenges remain in optimising Motor Vehicle Tax (PKB) collection. One of these issues relates to the high number of vehicles that have failed to re-register (KTMDU).

Jajang estimated that the current achievement of the Motor Vehicle Tax is around 90 per cent of its potential. Therefore, he believes that increasing public awareness regarding timely vehicle tax payments remains a significant task for all P3D offices across West Java.

Beyond the tax sector, Commission III also highlighted the performance of Bank BJB Regional Office III in Cirebon Regency. Although growth was recorded, the DPRD provided notes regarding the Loan to Deposit Ratio (LDR).

“Overall, there is an improvement in performance, but our note for the region concerns the LDR. Third-Party Funds (DPK) collected are still relatively small compared to the disbursement of credit,” he said.

Jajang expressed hope that Bank BJB could be more active in encouraging the public to deposit their funds in the bank. Given that BJB receives support from both the provincial government and the regency and municipal governments across West Java, he hopes the bank can strengthen its competitiveness and enhance performance amidst competition with national banks.

Commission III also encouraged that investments entering West Java should have a greater impact on labour absorption. Jajang hopes that investment will not only be capital-intensive but also increase labour-intensive investment.

“We recommend that all partners maximise their performance. In the capital investment sector, investments entering West Java are expected to be not only capital-intensive but also labour-intensive, so they can optimally absorb the local workforce,” he said.

Regarding BUMDs, Commission III requested health-restoration measures for regional companies that are not performing at their maximum potential. The restructuring of governance and the optimisation of assets are expected to increase the contribution of BUMDs to regional revenue while simultaneously supporting the development of West Java.

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