OJK Hopes That The Regional Head Of Central Sulawesi Will Optimize The Development Of The Bank Whose Shares Are Owned By Chairul Tanjung

Illustration. (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) expects regional heads as shareholders to optimize and encourage the development of Regional Development Banks (BPD) or Central Sulawesi Banks with adequate capital resilience.

"Through efforts to increase capital so that technology-based service activities, ITE can continue to be developed so that it is expected to be on par with other conventional commercial banks," said Head of OJK Representative of Central Sulawesi Gamal Abdul Kahar, in Palu, quoted from Antara, Friday, December 4.

According to him, the banking sector does have a very important role in supporting the regional economy, especially in Central Sulawesi.

However, Central Sulawesi Bank as an extension of the regional government in assisting the distribution of financing to the community which is in line with the BPD vision to become a trusted, healthy, advanced and developing bank that is competitive, with appropriate technology and contributes to economic growth in this province.

"We are aware that there are still many challenges faced by BPD in its development in the regions, ranging from problems with capital, competitiveness, service quality, Human Resources (HR) to innovation and product development, all of which still need to be improved," said Gamal.

Even so, he explained, the success of implementing this strategy will depend on the awareness and strong commitment of the shareholders and BPD managers in order to transform themselves into real regional 'champions'.

The intermediation performance of the OJK sector is still in line with the national economy. Based on October 2020 records, the total national banking assets were recorded at IDR 9.075 trillion with a growth of 8.74 percent, then the collection of third party funds was IDR 6.620 trillion and this is still growing at a high level of 12.12 percent.

"Talking about OJK's support for development in Central Sulawesi, last October it still showed growth compared to the previous year," said Gamal.

In line with that, he said, the role of banking in this province remains on a positive path in the real sector amid slowing domestic and global economic growth with a total LDR reaching 118.26 percent.

For information, Bank Central Sulawesi is one of the BPDs whose shares are owned by conglomerate Chairul Tanjung. The owner of CT Corp controls 24.90 percent of Bank Sulteng shares.