Bandung City Pushes Regulatory Refinement to Strengthen Local Bank

Bandung City, Indonesia – The Special Committee (Pansus 18) of the Bandung City Regional People's Representative Council (DPRD) is intensifying discussions on a draft regional regulation (Raperda) aimed at strengthening Bank Bandung, a local economic development bank. During a working meeting held on Tuesday, July 14, 2026, it was emphasized that regulatory refinement, full support from the Bandung City Government, and institutional transformation are crucial for the bank to enhance its role in the regional economy. Bagja Jaya Wibawa, Chairman of Pansus 18, stated that the creation of a matrix is essential for systematically and efficiently proceeding with the deliberation of the Raperda, aiding in the in-depth examination of each article. Wibawa stressed that trust in Bank Bandung must first be demonstrated by the City Government, which will then foster trust within the community. This support can be realized by granting strategic roles to the Regional Economic Development Bank (BPR), such as managing regional treasury, facilitating payroll for PPPK (contract-based civil servants) and outsourced staff, and other government-related financial services. "Essentially, the BPR must first gain the trust of the Bandung City Government. This is a form of political will from the local government to provide the BPR with opportunities to develop while simultaneously increasing public trust," Wibawa remarked. Furthermore, Wibawa expressed the need to strengthen the oversight mechanism for BPRs within the Raperda, as it is not adequately regulated under current provisions. To this end, the Pansus plans to conduct Focus Group Discussions (FGDs) to delve deeper into the matter before proceeding to article-by-article deliberations. He also encouraged the establishment of policies that clarify the scope of business activities Bank Bandung can undertake, asserting that the bank cannot be left to compete freely with general banks without policy support from the local government. Indri Rindani, Vice Chairman of Pansus 18, acknowledged that Bank Bandung still faces challenges, including a high Non-Performing Loan (NPL) ratio and issues related to human resource capacity. However, she remains optimistic about the bank's recovery, bolstered by insights gained from a working visit to the Indonesian Association of Regional Economic Development Banks (Perbarindo) regarding strategies for transforming BPRs into Perseroda (publicly listed regional development banks). "We must have the same spirit. Don't be pessimistic about the current condition of the BPR. Instead, through this Pansus 18, we want to bring about change so that Bank Bandung can grow and provide greater benefits to Bandung City," Rindani stated. According to Rindani, the transformation of BPRs should be directed towards increasing their contribution to Regional Own-Source Revenue (PAD), while simultaneously expanding access to financing for Micro, Small, and Medium Enterprises (UMKM) and creative industries. She also highlighted the still low public awareness of Bank Bandung. Based on her interactions with community groups, many residents are unaware of the existence and services offered by BPR Bandung. Consequently, she urged for more massive socialization efforts involving the Economic Bureau, relevant Regional Apparatus Organizations (OPDs), and enhanced promotion through digital media. In addition to socialization, she advocated for synergy with OPDs that foster UMKM to ensure that BPR's financing programs reach a wider range of entrepreneurs. This collaboration, she believes, will strengthen public trust and broaden Bank Bandung's customer base. "Let's align our vision and spirit to rebuild Bank Bandung. With the collaboration of all parties, I am confident that Bank Bandung can rise and contribute more significantly to Bandung City's economic growth and PAD," Rindani concluded. Source: Liputan6