JAKARTA – PT Bank Pembangunan Daerah (BPD) Jawa Timur Tbk (BJTM) or Bank Jatim is ready to stand as a holding bank of Banking Business Group (lit. Kelompok Usaha Bank/KUB), overseeing five regional banks. These five banks in question include Bank NTB Syariah, Bank Lampung, PT BPD Banten Tbk (BEKS), Bank Sultra, and Bank NTT.

According to the directors of Bank Jatim when met at Public Expose via Zoom today (8/11), out of these five companies, Bank NTB Syariah reports the most advanced progress, after obtaining the license from OJK and equity participation. Now, it is awaiting the implementation of KUB scheme.

Meanwhile, Bank Lampung and Bank Banten are reported undergoing due diligence as well as signings of deeds and agreements regarding shares portion. For next, these banks still need to obtain the license as KUB member and permit for equity participation from OJK.

“KUB is a novel concept; for us, BPD, as well. This OJK’s policy will present a new paradigm in perceiving regional banks; there will be a ‘holding’ aspect as we will become the parent and anchor for our regional bank partners,” added Busrul Iman, President Director of Bank Jatim, on the same occasion.

Based on POJK 12/POJK.03/2020, regional banks are mandated to meet core capital requirement of a minimum of IDR 3 trillion, no later than December 2024.

According to Iman, this policy will surely drive Bank Jatim to improve the company’s capacity and capability in managing its capital and pertinent human resources. However, he also believes that KUB will benefit all parties, both the company and other regional bank partners.

“With Bank Jatim’s corporate action through this KUB formation, regional banks’ core capital requirement will be met, at least IDR 3 trllion,” said Iman.

In addition, with the consolidated financial report, BJTM will report exponential non-organic growth, both in terms of assets and dividend received from its KUB partners. It is worth noted that as of September 2024, BJTM’s assets were at IDR 106.63 trillion. “With this consolidation with regional bank partners, the assets may reach IDR 165 trillion, and there is the dividend, as well,” added Iman.

However, a risk surely entails this KUB scheme, as not all regional bank partners record great performance. For example, BEKS recorded NPL of 9.76% as of Q2 2024. “Thus, there must be a level of preparedness from Bank Jatim; our capitalisation must be solid, as well,” added Edi Masrianto, Director of Finance of BJTM, on the same occasion.

On the other hand, Iman emphasised that not all regional bank partners under KUB Bank Jatim is having capital deficiency. “Its CAR is extensive. So, KUB will improve the scale of their businesses; but that does not mean they deficient in capital,” Iman said. According to him, this is also aligned with the intention of KUB formation, which aims to optimise business and economic potential in various regions of KUB partners. (ZH)