Govt Launches BPD Transformation Program

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  • Muliaman Hadad. ANTARA/Fanny Octavianus

    Muliaman Hadad. ANTARA/Fanny Octavianus

    TEMPO.CO, Jakarta – The government has launched the Regional Development Bank (BPD) Transformation program to strengthen BPDs' competitiveness and boost their contribution to regional development. According to Financial Services Authority (OJK) chairman Muliaman Hadad, BPDs' role needs to be revitalized to support economic growth and the people’s welfare in regions.

    “This kind of business needs commitment from the government,” said Muliaman on Tuesday.

    Muliaman said the strengthening of regional banks is expected to be able to boost capitalization of every bank, which would allow them to participate in the development of productive sectors, such as large infrastructure projects.

    According to Muliaman, this transformation of regional banks is also expected to boost the asset value of every BPD, which has reached Rp433 trillion. “Hopefully, in the next ten years, the asset growth can be 20 percent per year,” he said.

    Six strategies have been prepared to meet the target: development of joint products, management of shared services, marketing development, network management, portfolio management and liquidity strengthening.