BPD Is Not Just A Financial Institution, But A Regional Development Catalyst

Chairman of the Association of Regional Development Banks (Asbanda) Agus Haryoto Widodo. (Photo: Special)

JAKARTA - The Association of Regional Development Banks (Asbanda) and Bank BPD DIY held a National BPD Seminar throughout Indonesia (BPDSI) entitled Implementation of the Village Financial System Through BPDSI to Support Village Financial Governance at the Royal Ambarrukmo Hotel, Yogyakarta, Thursday, August 7, 2025.

Asbanda Chairman Agus Haryoto Widodo said the presence of the Derah Development Bank (BPD) was not just a financial intermediation agency, but as a catalyst for regional development.

"The role is important and very strategic, including encouraging economic growth, regional cash management, and contributing to local revenue," said Agus, who also serves as President Director of Bank Jakarta.

In the context of village financial management, Agus said, Asbanda fully supports digital transformation systems, such as the Village Financial System (Siskeudes) and the Implementation System of Fund Disbursement Orders (SP2D) in online form through the Local Government Information System (SIPD) application, which has been accelerated through the Regulation of Permendagri Number 70 of 2019 and Circular Letter Number 130/736/SC of 2020.

"Asbandanda's collaboration with the Ministry of Home Affairs (Kemendagri) is a concrete step in digitizing fiscals. This system will strengthen accountability, efficiency, and transparency at the village level as well as a milestone in electronifying local government transactions," he said.

On the same occasion, the Governor of the Special Region of Yogyakarta (DIY) Sri Sultan Hamengku Buwono X said, the implementation of Siskeudes is proof that digitalization is an instrument of bureaucratic civility.

"The significant presence of a digital-based village financial system can improve performance and accountability," said Sri Sultan.

He continued, the role of BPDSI became very strategic. Not just as a financial partner, but a catalyst for the transformation of village governance.

Integration of Siskeudes with BPD Cash Management System (CMS) services, is expected to strengthen village budget governance, so that it can be managed collaboratively, efficiently, and oriented towards fiscal justice.

"This system not only accelerates disbursement, but also narrows the space for manipulation, and expands transparency," explained Sri Sultan.

In the National BPD Seminar throughout Indonesia, Asbanda presented a number of resource persons, including Bahri, Director of Facilitation of Financial Planning and Assets of Village Government of the Directorate General of Village Administration of the Ministry of Home Affairs; Jaka Sucipta, Director of Village Funds, Incentives, Special Autonomy, and Privileges of the Director General of Financial Balance of the Ministry of Finance (Kemenkeu); and Eko B. Supriyanto, Chairman of the Infobank Institute.

Bahri said the Ministry of Home Affairs continues to facilitate the management of village finances based on non-cash transactions. One of them is through the Siskeudes application with the CMS Bank application which continues to be developed with the latest version.

"This is an effort to support the implementation of non-cash transactions, so that taxes and transactions can automatically be inputted in the Siskeudes application and become a policymaker tool related to village financial management," he said.

Bahri reported, to date as many as 115 regencies/cities and 11,070 villages have implemented non-cash transactions.

"In DIY Province, there are already three districts that have implemented non-cash transactions in villages, namely Bantul, Sleman, and Gunung Kidul Regencies," he explained.

Village Funds And Management Challenges

Based on data from the Ministry of Finance, village funds disbursed by the government since 2015 until now the amount has reached IDR 678.9 trillion. Therefore, its financial management must be transparent and accountable.

To encourage this, Jaka said, the government encourages digital fund management through Siskeudes. Until now, the use of the Siskeudes application carried out by the village government has covered 95.3 percent. The use of the Siskeudes application has not been able to reach all villages in the country.

"There are 3,000 villages that are currently not reached by Siskeudes, because the telecommunications service is not good enough," he explained.

To work around it, said Jaka, the Ministry of Finance is developing an application of the Teman Desa Village Financial Information System (SIKD Teman Desa). Especially, for villages that use non-app Siskuedes or desktop.

Jaka explained, there are two implementations of Siskeudes, namely online and desktop. SIKD This village is a solution for villages that do not use non-app Siskuedes.

Next, Eko B Supriyanto also highlighted the challenges in implementing Siskeudes. One of them is about technical knowledge.

According to him, the lack of village apparatus skills in operating applications hampers the optimal utilization of this system.

Second, said Eko, about infrastructure. Limited access to computer devices and internet connectivity in several areas can hinder Siskeudes' implementation to the fullest. Not to mention the potential for cyber attacks.

BPD is IT solid, but is the village government running Siskeudes. This cyber attack attacks on our weak points," he said.

Furthermore, said Eko, about technical support. Lack of technical support from the center when problems occur, such as bugs in the application. This can reduce user confidence in the system," he concluded.