Bank Jatim Launches Local Government Credit Card

JAKARTA - PT Bank Pembangunan Daerah Jawa Timur Tbk (Bank Jatim) and Pemerintah Kota Batu, East Java, launched a Regional Government Credit Card (KKPD) in order to increase the application of local government transaction electronification (ETPD).

"We are ready to support the Batu City Government to improve ETPD for the realization of increased efficiency and effectiveness of regional financial management, one of which is through the KKPD," said IT and Digital Director of Bank Jatim Zulhelfi Abidin in his statement in Surabaya, East Java, quoted from Antara, Thursday 18 July.

Zulhelfi said that the KKPD has many positive goals, including increasing transparency and accountability in regional financial management and improving the quality of public services.

Then, it also reduces the potential for fraud from cash transactions, encourages regional innovation and makes it easier for APBD implementing officials to shop for goods/services through e-payment.

"So, at the same time support the acceleration of increasing the use of domestic products (P3DN)," he said.

He explained that the use of KKPD can shorten administration and provide transaction data in a transparent manner because every extortion detail through the KKPD is recorded so as to increase accountability.

Not only that, the use of KKPD can also involve all MSMEs in East Java, so that they can advance to class along with P3DN because most of the KKPD UP transactions or about 40 percent of them can be absorbed through MSMEs.

"The potential is large, in East Java alone there are 29 regencies and nine cities with more than 5,000 regional government work units (SKPD) and millions of MSMEs. That must be optimized," said Zulhelfi.

Moreover, the implementation of regional financial digitization has become an urgency because it can support regional financial governance to be effective and efficient in order to encourage transparency and accelerate local government transactions.

Acting Mayor of Batu, Aries Agung Paewai, ensured that his party would encourage all regional apparatus to use the KKPD in Batu City so that it could increase budget absorption in Batu City.

"We also hope that the use of KKPD can provide positive benefits for local products, especially in the procurement of goods and services expenditures," he said.