Prabowo orders state banks to prioritize public welfare over profit

President Prabowo Subianto has issued a firm directive to the management and supervisory boards of Indonesia's state-owned banks, collectively known as Himbara. The President emphasized that these banks should not solely focus on profit generation but must significantly enhance their contributions to public welfare by broadening access to financial services and economic opportunities.

During a four-hour meeting at the Presidential Palace, President Prabowo's instructions were clear: the presence of state banks must be genuinely beneficial to the public. Rosan Roeslani, the Minister of Investment and Downstreaming and CEO of Danantara Indonesia, conveyed the President's message, stating that state banks should provide equal opportunities for Micro, Small, and Medium Enterprises (MSMEs), the commercial sector, and corporations.

Himbara comprises major state lenders: Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Negara Indonesia (BNI), Bank Tabungan Negara (BTN), and Bank Syariah Indonesia (BSI). President Prabowo expressed strong optimism about Indonesia's economic prospects and expects these state-owned banks to play a more proactive role in expanding financing access and reducing credit barriers across all segments of society.

Reviewing the market capitalization of these five institutions, Bank Mandiri stands at approximately Rp450 trillion, BRI slightly above Rp450 trillion, and BNI around Rp200 trillion. BTN and BSI also contribute significantly, bringing the combined market capitalization to about Rp1.100 trillion, representing roughly 10 percent of Indonesia's total market capitalization. This substantial financial strength underscores Himbara's strategic role in supporting economic stability and national economic growth, positioning them as key drivers for equitable welfare distribution.

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The President instructed all banks and their boards of commissioners not only to focus on profit but also to ensure their presence is felt by the community by providing equal opportunities for MSMEs, the commercial sector, and corporations.