Bandung City Council Committee Pushes for Bank Bandung Strengthening Through Regulatory Refinement

Bandung City's Regional People's Representative Council, through its special committee Pansus 18, is actively working to bolster the regional development bank, known as Bank Bandung. The committee is finalizing a draft regional regulation aimed at strengthening the bank's role as a driver of the regional economy. Key to this effort is the emphasis on enhanced regulatory frameworks and institutional transformation.

Bagja Jaya Wibawa, the head of Pansus 18, stressed the importance of the Bandung city government first placing its trust in Bank Bandung before the public will. He suggested that granting the bank a strategic role in managing regional treasury funds, processing payroll for contract and outsourced employees, and other government financial services would demonstrate this political will. Wibawa also highlighted the need to strengthen oversight mechanisms for the bank within the new regulations.

Despite acknowledging current challenges, including a high ratio of non-performing loans (NPL) and issues with human resource capacity, Deputy Head of Pansus 18 Indri Rindani expressed optimism. Rindani's confidence is bolstered by insights gained from a working visit to the Association of Regional Development Banks of Indonesia (Perbarindo). The committee aims to transform Bank Bandung to increase its contribution to regional revenue and expand financing access for micro, small, and medium enterprises (MSMEs).