The Financial Services Authority (OJK) has urged Regional Development Banks (BPDs) to strengthen their role through Bank Business Groups (KUB) to increase financing for micro, small, and medium enterprises (SMEs) and support regional economic growth (03/02).

Dian Ediana Rae, Executive Director of Banking Supervision at OJK, made the statement during a meeting with CEOs, board members of parent banks, and all BPD members of KUB at Gedung A.A. Maramis, Jakarta.

The gathering aimed to align policies and strategic directions among regulators, the banking industry, and local governments to promote inclusive and sustainable economic growth.

KUB Formation Marks Milestone in Regional Banking

Dian highlighted that the completion of KUB establishment is an important milestone for strengthening regional banking structures.

“The formation of KUB is not merely a banking consolidation policy but a strategy to strengthen the foundations of the regional economy. BPDs with strong capital, good governance, and effective business synergy will be better able to support regional development agendas,” she said.

Through KUB, BPDs are expected to improve economic scale, operational efficiency, and capacity for product and service innovation, including the use of digital technology to expand financing access.

Local Governments Play a Strategic Role

Local governments, as shareholders of BPDs, are seen as critical in supporting the banks. This includes creating a conducive business ecosystem, strengthening sustainable capital, and positioning BPDs as key partners in regional development programs.

Consolidation and synergy through KUB are aimed at increasing BPD contributions to productive sectors, especially SMEs.

By boosting SME credit, local economies are expected to grow, jobs to be created, local businesses strengthened, and regional disparities reduced.

Coordinated Supervision to Ensure Healthy SME Credit

On the same day, OJK held a Regional Banking Supervision Coordination Meeting with all regional OJK heads and banking supervision units.

The meeting focused on aligning oversight of KUB, enhancing central and regional coordination, and formulating strategies to support healthy and sustainable SME credit growth.

Dian stressed, “This forum reaffirms our joint commitment to ensure KUB not only strengthens BPD capitalization but also improves risk management and governance quality. As a result, BPDs can serve as regional development agents more effectively.”

OJK Commitment to Strengthen BPDs

OJK confirmed its commitment to continue supporting BPDs through integrated policies, adaptive supervision, and close cooperation with local governments.

The strengthening of BPDs through KUB is expected to accelerate regional economic transformation that is inclusive, competitive, and sustainable.

PHOTO: OJK

This article was created with AI assistance.

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