Having An Obligation To Inject IDR 400 Billion Into BPD DIY, The Yogyakarta City Government Has Realized IDR 91.4 Billion

YOGYAKARTA - The Yogyakarta City Government has again disbursed additional capital participation to the DIY Regional Development Bank (BPD) to fulfill the mandate of Regional Regulation Number 17 of 2018. This time the value is Rp61.4 billion.

"This capital participation is the second time we have done this year after it was previously carried out in February with a value of Rp. 30 billion," said Acting Mayor of Yogyakarta Sumadi, quoted by Antara, Friday, November 18.

Thus, the total capital participation submitted by the Yogyakarta City Government to BPD DIY throughout 2022 was recorded at IDR 91.4 billion.

In accordance with local regulations, the Yogyakarta City Government has an obligation to include capital to BPD DIY with a total value of IDR 400 billion which is carried out in stages within eight years since the regulation is promulgated or maximum in 2025.

According to Sumadi, the newly handed over capital participation will help the company's operations so that it can have a greater role to play in supporting economic growth in DIY in order to realize people's welfare.

"Hopefully, BPD DIY will continue to increase its role to encourage economic growth, especially for MSME players in accessing business loans so as to accelerate economic recovery due to COVID-19," he said.

Sumadi said, MSMEs are one of the pillars of the economy in Yogyakarta so that if MSMEs quickly recover and grow strongly, the economy will grow.

Meanwhile, DIY BPD President Director Santoso Rohmad said the capital participation would provide stronger support for the operations of companies planning to separate business units, namely business units, sharia, and conventional ones.

"The plan to separate this business unit will be lighter because there is capital support and of course the digitalization of banks will continue to be maximized," he said.

He is also optimistic that the economy in DIY can still grow despite the threat of recession in 2023.

"The Yogyakarta economy is growing because the movement of people is expected not to be affected by recession because there is still a culture of friendship in society, especially during holidays," he said.