JAKARTA - Regional Development Banks (BPD) are encouraged to transform from merely managing regional government funds to become the main engine of regional economic growth through productive financing innovations.
Chairman of the Association of Regional Development Banks (Asbanda) Agus H Widodo assessed that the changing economic landscape and regional fiscal constraints require a more aggressive and strategic role for the BPD.
"In the future, the BPD is not enough to be a manager of regional government funds. The BPD must become an orchestrator of regional fund flows that are able to actively and sustainably drive the economy," he said in the National BPD Seminar in Solo.
He emphasized that BPD has structural advantages over other banks, ranging from proximity to local governments to understanding the local economy.
According to Agus, optimizing financing is the key amid fiscal constraints. One of the strategies that is encouraged is the use of regional loans not only for infrastructure, but also for productive sectors such as public services, health, education, and MSMEs.
"Regional loans must create a multiplier effect, not just short-term financing," he said.
On the other hand, Ahmad Luthfi assessed that the BPD has an important role in maintaining regional economic stability and encouraging investment.
"Regional development requires collaboration. We are not supermen, but a super team," he said.
In the future, the transformation of the BPD is expected to be able to encourage more inclusive and sustainable regional economic growth.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
