JAKARTA - Regional Development Banks (BPD) are encouraged to carry out massive transformations amid changes in the economic landscape and the increasingly limited fiscal space of regions.
Asbanda's General Chair, Agus H Widodo, emphasized that the BPD is no longer enough to play a role as a manager of regional government funds, but must become an orchestra of funds that can drive the regional economy.
"In the future, the BPD must be able to orchestrate the flow of funds to provide a direct impact on sustainable economic growth," said Agus in the National BPD Seminar in Solo.
According to him, BPD has competitive advantages that no other bank has, ranging from proximity to local governments to understanding local economic characteristics.
Agus assessed that every rupiah circulating in the region must be able to create added value and multiplier effect for the real sector.
In this context, financing innovation is the key.
One of the strategies that is being encouraged is the optimization of regional loans, not only for infrastructure, but also for productive sectors such as MSMEs, health, and education.
"Regional loans must be a strategic instrument to encourage economic growth, not just short-term financing," he explained.
On the other hand, Ahmad Luthfi emphasized the importance of collaboration in regional development.
"We are not supermen, but a super team. All parties must collaborate to encourage regional economic growth," he said.
He added that the role of the BPD is very crucial in maintaining regional economic stability as well as supporting investment and strengthening the MSME sector.
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