Holds 'Fun Walk', Perbarindo Announces New Name 'People's Economy Bank'

Photo: Special

JAKARTA - The Association of Indonesian People's Economy Banks (Perbarindo) has launched a new name for BPR which has changed to a People's Economy Bank. This name change is in accordance with Law (UU) Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK), which was passed on January 12, 2023. In the law, the Sharia People's Financing Bank (BPRS) has also changed to the Sharia People's Economy Bank (BPRS).

Chairman of the DPP Perbarindo Tedy Alamsyah said with this new name, his party is confident that it can further increase public trust, service to MSMEs, and the welfare of the Indonesian people.

"The P2SK Law is part of the omnibus law which changes about 17 regulations related to the financial sector that have been in effect for a long time, even up to thirty years, so it needs to be adjusted to the current needs of the national banking industry," said Tedy.

The P2SK law is a momentum and energy for BPRS BPR in Indonesia to increase its competitiveness. There are several important points that have been regulated by the law that strengthen the industrial position, including (1) the credit name has been changed to the economy, this name change is expected to increase public awareness of BPRS BPR, finally the intermediation function can run more optimally. (2) The expansion of the function and role of BPRS BPR by presenting technology-based services and products.

In this law, the BPRS BPR business is added several points, one of which can make an participation in the BPRS protection agency (3) BPR can buy debtor guarantees that are problematic, both partially and completely. (4) BPRS BPR can go public, this is certainly an opportunity to get low-cost funding (5) BPRS BPR can cooperate with Commercial Banks, this has indeed happened to date.

"But entering into the law will certainly strengthen and increase the synergy of both parties to serve MSMEs. We must of course take advantage of this positive thing, so that this industry can grow sustainably," added Tedy.

The launch of the new BPR name was carried out in conjunction with the Fun Walk' event at the East Parking Lot of the Bung Karno Gelora (GBK) area, Senayan, on Sunday, May 28, 2023. This Fun Walk activity was carried out simultaneously by DPD Perbarindo throughout Indonesia simultaneously with a total of around 80,000 participants.

As for the East Java DPD, the activity was centered on the Hero Monument, Bali at the East Field of Bajra Sandhi Denpasar, Central Java at the Central Java Governor's Office, DIY at the Jogja Expo Center (JEC) Yogyakarta, Lampung Jl. Radin Intan B. Lampung, South Sulawesi Makassar Monument, NTB at Zam Rembiga Mataram Air Base, Riau in the Office of the Government of Rokan Hulu Regency, East Kalimantan at the Samarinda Museum Jalan Bhayangkara, Jambi at the Jambi Governor's Office Field, South Kalimantan at Murjani Field Banjarbaru.

Then in South Sumatra Babel at Jakabaring Sport Center and Ampera Palembang Bridge, Riau Islands in Harborbay Batam, Maluku Papua in He'Cnuk Injros Beach HolteCamp Jayapura, Central Sulawesi Rukan Vatulemo office yard of Bank Muamalat Palu, West Kalimantan-head of Kapuas Square and West Sumatra Bengkulu in front of their own office, namely Jl. Batang Marao No. 6 Padang. In addition to launching a new name BPR, in the commemoration of the National BPRS BPR day, a Fun Walk 2023 event was also held, which was followed by financial literacy activities, entertainment with the band Ada Band. The participants seemed enthusiastic about participating in the presentation of financial literacy, as well as enjoying the performance of the band Ada Band music group.

In addition, the committee also provided a digital ID card service (Digital Population Identity/IKD) in collaboration with the Directorate General of Dukcapil and SLIK services for people present in collaboration with the Financial Services Authority (OJK).

The launch of the name of the People's Economy Bank was carried out by Perbarindo Chairman Tedy Alamsyah together with the Regulators, namely, Lana Sulistianingsih of the Board of Commissioners and Chief Executives of the Deposit Insurance Corporation, Chairman of the OJK Board of Commissioners represented by Aman Santoso, Head of the OJK Literacy and Education Department Fery Irawan, Deputy I for Macroeconomic Coordination and Finance of the Indonesian Ministry of Economics, Minister of Cooperatives and SMEs of the Republic of Indonesia represented by Irene Swa Suryani, Asdep of Micro Business Financing, and Arsjad Rasjid Chairman of the Indonesian Chamber of Commerce and Industry.

Tedy Alamsyah, conveyed the theme of this year's National BPRS BPR Day, namely Growing Stronger Transformation Faster, and Welfare of the People's Economy. With the P2SK Law, it can further increase the role of 1500 BPRS BPR in the Indonesian economy.

The BPR - BPRS industry currently plays a fairly strategic role in the Indonesian economy, especially in encouraging the development of micro, small and medium enterprises (MSMEs). Where the existence of BPR-BPRRS is closer to the community, by providing an easy, fast and safe process.

"It is hoped that the BPRS BPR can transform faster in Digitalization as it is today, we are intensifying the use of BPR Ecash to the people who attended the Fun Walk event at the Senayan Eastern Parking Plaza, GBK Jakarta Area," explained Tedy Alamsyah.

Perbarindo is a Association for BPR and BPRS throughout Indonesia, which number more than 1,500 members/BPR-BPRRS. Currently, Perbarindo has 24 Regional Management Boards (DPD) at the Provincial level and 48 Commissariat Management Boards (DPK) at the Regency and City levels. Until December 2022, the total assets of the People's Credit Bank (BPR) and Sharia People's Financing Bank (BPRS) grew 9.14 percent or to Rp202.46 trillion, from December 2021 which was still Rp185.50 trillion.

Meanwhile, the distribution of BPR/BPRRS credit funds as of December 2022 grew 11.81 percent, exceeding the credit growth rate before the COVID-19 pandemic which was recorded at 10.85 percent.