Bandung City Council Accelerates Plan to Make BPR Syariah a Regional Public Company

Bandung City Council and the local government are fast-tracking discussions on a regional regulation to convert BPR Syariah Bandung into a Regional Public Company, known as Perseroda. This mandatory legal shift aligns with Financial Services Authority (OJK) policies, particularly concerning the transformation of rural credit banks into regional limited liability companies.

According to Bandung City Council member Eko Kurnianto W., the regulation change is essential to meet OJK requirements and adapt the regional government's bank to current standards. Legal foundations for this transformation include Law Number 7 of 2024 and Home Affairs Ministry Regulation Number 21 of 2024. The goal extends beyond a mere name change; it seeks to enhance corporate governance, boost capital capacity, improve competitiveness, and elevate the company's overall performance.

The Perseroda status is anticipated to unlock greater access to capital through potential equity injections from external parties. While the regional government is expected to maintain majority ownership with at least a 51 percent stake, this structural change aims to bolster the bank's financial health and operational capabilities. "This transformation is expected to strengthen corporate governance, increase competitiveness, and open up broader capital opportunities," Eko stated.

Despite the planned transformation, the Bandung City Council has identified persistent internal challenges. These include a high rate of non-performing loans (NPLs), the need for stronger governance and management, and ongoing operational performance issues. The council also noted the current leadership vacuum, with the position of BPR Syariah's head being filled by an acting official (Plt). These internal matters are critical considerations to ensure the transition results in a healthier, more sustainable, and effectively managed financial institution that truly benefits the region.