Press Release OJK BPR Regional Economy.pdf
In order to improve
comprehension, commitment from BPD management and support from BPD stakeholders
in implementing BPD Transformation program, OJK in cooperation with Association
of Regional Development Banks (Asbanda) and Home Affairs Ministry held a
seminar themed "Transforming BPDs to
Enhance Regional Economic Development" in Jakarta.
OJK’s Chief Executive for Banking Supervision Nelson
Tampubolon said in his
speech that BPDs’ performance until first quarter of 2016 was considered
As of end of March 2016, BPD’s total assets worth Rp 531.30 trillion or grew by 6.48 percent (yoy). Third-party funds were Rp 432.44 trillion or increased
by 5.27 percent, while credit channeling reached Rp 328.19 trillion or
increased by 8.12 percent (yoy).
BPDs’ profit grew by 7.91 percent (yoy), whereas minimum capital adequacy requirement (KPMM) reached 20.61 percent. Gross non-performing loan (NPL) ratio as of March 2016 was relatively
stable at 3.89 percent compared to previous figure of 3.83 percent.
However, BPDs’ contribution to regional economy
remained low, indicated by percentage of productive credit market, which was
only around 30 percent of total channeled credit.
“For that reason, BPDs’ performance and roles have to
be improved so that the banks may truly carry out their mission as agent of
development, “said Nelson.
The seminar aimed to support the implementation of BPD
Transformation program launched on May 26, 2016 by President of Indonesia at the
presidential palace, with a vision to realize
BPDs that have high level of competitiveness, strong and significantly
contribute to the growth and equal distribution of sustainable regional
The vision is to be
actualized in three phases, namely: (i) Foundation building phase, (ii) Growth
acceleration phase and (iii) Market leadership phase.
The BPD Transformation
program is a strategic initiative that will not only enhance performance,
resilience and competitiveness of BPDs, but will also give major impact on
regional economy and strengthen the resilience of national banking industry.
OJK and Asbanda have also
made cooperation with some international institutions, among others the Sparkassenstiftung fur International Kooperation (Savings Banks Foundation for International Cooperation) and World Bank in the framework of technical assistance for BPD Transformation program.
OJK expected support from
related institutions, mainly international institutions including Asian
Development Bank (ADB), Deutsche
Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) and SECO to make BPD Transformation program successful.
The seminar was expected to give inspiration and
motivation to participants, particularly BPDs, to transform themselves, and
then be followed by actual measures to support the implementation of BPD
For that goal, the seminar presented Prof. Neo Boon
Siong, an expert in dynamic
governance from Nanyang Technological University
of Singapore as the keynote
speaker, who explained about the framework and case study of successful
transformation programs for public and private institutions in Singapore.
Successful transformation that happened to a few
national banks domestically could also be regarded as valuable lessons. For instance,
lessons from the transformed BTPN. The bank was invited as the speaker in the
seminar to share experience in developing micro banking business in Indonesia.
Indonesia was also
invited as it had a successful business transformation and established a
holding company to develop synergy among its subsidiary companies. Such
experiences were considered to be very relevant to Asbanda and BPDs for their learning
and for them to develop in the future, in line with President’s guidance to
establish a holding company for state-owned enterprises (BUMN) and BPDs.
After a year since it was first launched, BPD
Transformation program recorded some progress made by Asbanda and BPDs, among
others the establishment of Project Management
Office (PMO) of BPD
Transformation program, which functions as the activator of the program.
Apart from that, BPD of East Kalimantan province has
launched BPDNet Online platform and Laku Pandai branchless banking program in
end of 2015, which will be followed by other BPDs in 2016. BPDs must make sure
that the launched Laku Pandai program runs sustainably and give benefits to
society, not halted after the launching instead.
Nelson Tampubolon said that implementation of BPD
Transformation program have to be accelerated by Asbanda and BPD, with supports
from shareholders and stakeholders, so that BPDs become able to lead and catalyze
development in respective region.
For more information:
Advisor to Deputy Commissioner IV for Banking
Supervision, Financial Services Authority. Phone: 021.29600000. Email: firstname.lastname@example.org, www.ojk.go.id
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