Facing Challenges, Bank DKI Pursues Banking Transformation

Bank DKI Jakarta Building (doc Bank DKI)

JAKARTA - Bank DKI Corporate Secretary, Arie Rinaldi admitted that his party faces various challenges in running a business as a regional development bank (BPD) owned by the DKI Jakarta Provincial Government.

The situation in question includes volatility, uncertainty, complementity, and ambiguity (VUCA). VUCA is a challenge that occurs due to disruption, market shift, changes in consumer behavior, and increasingly fierce business competition.

The strategy implemented by Bank DKI, according to Arie, is to prioritize banking transformation

"Currently, the competition for digitizing services in the banking and financial industries is also getting tighter. The digital transformation step carried out by Bank DKI is currently on the right track," said Arie in his statement, Sunday, April 7.

Arie said that his party continues to adapt in facing business challenges in the future. One of them is the Jakarta Tourist Pass which is run with the DKI Jakarta Tourism and Creative Economy Office.

Jakarta Tourist Pass is a digital solution based on electronic money cards (JakCard Bank DKI) and electronic/e-wallet wallets (JakOne Pay Bank DKI) to make it easier for tourists to access popular destinations, public transportation, culinary, events, and other tourism services in Jakarta.

Not only that, but the Jakarta Tourist Pass also provides easy transactions with a scan to pay feature to make QRIS payments and Jakcard top-up features to fill in Jakcard practically in one application.

"Bank DKI is committed to innovating in digital banking products and services, which will further facilitate customers, partners, and other stakeholders. By continuing to update and improve digital services, Bank DKI is determined to be the main choice in meeting customer banking needs," said Arie.

On the one hand, Bank DKI recorded a net profit in the Q4 2023 period of IDR 1.02 trillion. The bookkeeping value of this profit is the highest since Bank DKI was founded in 1961.

Bank DKI's Director of Finance and Strategy, Romy Wijayanto, said that the net profit grew 8.63 percent compared to the Q4 2022 period of IDR 939.11 billion.

"This performance achievement is one of the milestones of Bank DKI which was realized thanks to the support and trust of all stakeholders," said Romy.

Romy explained that this increase in net profit was driven by an increase in interest income which grew 17.82 percent to Rp5.34 trillion in Q4 2023 from the previous Rp4.53 trillion in Q4 2022.

Then, fee-based income increased by 8.47 percent from the previous Rp576 billion in Q4 2022 to Rp624.77 billion in Q4 2023.

Throughout 2023, Bank DKI has disbursed loans including sharia financing of IDR 52.00 trillion in Q4 2023 from IDR 48.37 trillion in Q4 2022 or grew by 7.50 percent.

"Credit and financing growth was driven mainly by the retail credit segment which grew by 49.01 percent to Rp1.93 trillion in Q4 2023, from Rp1.29 trillion in Q4 2022," Romy explained.

Meanwhile, growth in the micro credit segment increased by 42.67 percent to IDR 3.66 trillion in Q4 2023, from IDR 2.56 trillion in Q4 2022.