Regional Development Banks (, or BPD) are a type of bank in Indonesia that is established and owned by the local provincial government. Its purpose is to boost regional development and provide initial

capital Capital and its variations may refer to: Common uses * Capital city, a municipality of primary status ** Capital region, a metropolitan region containing the capital ** List of national capitals * Capital letter, an upper-case letter Econom ...

to the province that

private bank Private banks are banks owned by either the individual or a general partner(s) with limited partner(s). Private banks are not incorporated. In any such case, creditors can look to both the "entirety of the bank's assets" as well as the entire ...

s would not risk giving, as well as giving basic financial services for the general provincial population. It was first established on 25 March 1960 and regulated under Law Number 13 of 1962 and Law Number 16 of 1999 Decree from the

Ministry of Home Affairs An interior ministry or ministry of the interior (also called ministry of home affairs or ministry of internal affairs) is a government department that is responsible for domestic policy, public security and law enforcement. In some states, the i ...

. According to the law, the shares of Regional Development Banks are divided into two; priority shares and regular shares. Priority shares ownership must be on the hand of provincial governments, while regular shares can be owned by second-level administrative governments under the respective provinces ( regencies & cities) and individuals. The director of these banks are appointed directly by the

governor A governor is an politician, administrative leader and head of a polity or Region#Political regions, political region, in some cases, such as governor-general, governors-general, as the head of a state's official representative. Depending on the ...

of the respective provinces and hold the office for 4 years. Provincial governors also have the ability to remove directors from the office for several reasons such as incompetency and corruption, with recommendation from local provincial parliaments. If there is more than one director, the law also states that they are not allowed to be closely related and should not occupy other governmental positions unless recommended. As of 2021, there are 26 regional development banks according to the

Financial Services Authority The Financial Services Authority (FSA) was a quasi-judicial body accountable for the regulation of the financial services industry in the United Kingdom between 2001 and 2013. It was founded as the Securities and Investments Board (SIB) in 1985 ...

. Not all provinces currently have their own bank, especially newly established provinces such as

North Kalimantan North Kalimantan () is a Provinces of Indonesia, province of Indonesia. It is located on the northernmost of Kalimantan, the Indonesian part of the island of Borneo. North Kalimantan borders the Malaysian states of Sabah to the north and Sarawa ...

and the

Bangka Belitung Islands The Bangka Belitung Islands (; Jawi: ) is a province of Indonesia. Situated off the southeastern coast of Sumatra, the province comprises two main land masses — the islands of Bangka and Belitung — and numerous smaller islands. Bangka B ...

, which both still share ownership of various bank companies with their respective parent provinces. In addition, some regional banks have subsidiaries in forms of BPRs (''Bank Perkreditan Rakyat'', or People's Credit Banks) which are usually owned and operated by governments of regencies or cities, acting as municipally owned corporations. These BPRs, according to the Financial Services Authority, exist to serve local people on providing basic financial services & credits, and are not allowed to demand deposits, do

foreign exchange The foreign exchange market (forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines foreign exchange rates for every currency. By trading volume, it i ...

activities, and have insurance services, hence differing from either BPDs or conventional banks. As of December 2020, combined there are more than 1,500 of BPR companies in Indonesia.

List of banks

* Bank Aceh (

Aceh Aceh ( , ; , Jawi script, Jawoë: ; Van Ophuijsen Spelling System, Old Spelling: ''Atjeh'') is the westernmost Provinces of Indonesia, province of Indonesia. It is located on the northern end of Sumatra island, with Banda Aceh being its capit ...

) * Bank BPD Bali (

Bali Bali (English:; Balinese language, Balinese: ) is a Provinces of Indonesia, province of Indonesia and the westernmost of the Lesser Sunda Islands. East of Java and west of Lombok, the province includes the island of Bali and a few smaller o ...

) * Bank Bengkulu (

Bengkulu Bengkulu (), historically known as Bencoolen, is a province of Indonesia. It is located on the southwest coast of Sumatra. It was formed on 18 November 1968 by separating out the area of the historic Bencoolen Residency from the province of ...

) * Bank DKI (

Jakarta Jakarta (; , Betawi language, Betawi: ''Jakartè''), officially the Special Capital Region of Jakarta (; ''DKI Jakarta'') and formerly known as Batavia, Dutch East Indies, Batavia until 1949, is the capital and largest city of Indonesia and ...

) * Bank Jambi (

Jambi Jambi is a province of Indonesia. It is located on the east coast of central Sumatra Sumatra () is one of the Sunda Islands of western Indonesia. It is the largest island that is fully within Indonesian territory, as well as the list of i ...

) * Bank Banten (

Banten Banten (, , Pegon alphabet, Pegon: بنتن) is the westernmost Provinces of Indonesia, province on the island of Java, Indonesia. Its capital city is Serang and its largest city is Tangerang. The province borders West Java and the Special Capi ...

) * Bank Jateng (

Central Java Central Java (, ) is a Provinces of Indonesia, province of Indonesia, located in the middle of the island of Java. Its administrative capital is Semarang. It is bordered by West Java in the west, the Indian Ocean and the Special Region of Yogya ...

) * Bank BJB (

West Java West Java (, ) is an Indonesian Provinces of Indonesia, province on the western part of the island of Java, with its provincial capital in Bandung. West Java is bordered by the province of Banten and the country's capital region of Jakarta to t ...

) * Bank Jatim (

East Java East Java (, , ) is a Provinces of Indonesia, province of Indonesia located in the easternmost third of Java island. It has a land border only with the province of Central Java to the west; the Java Sea and the Indian Ocean border its northern ...

) *

Bankaltimtara PT Bank Pembangunan Daerah Kalimantan Timur dan Kalimantan Utara (), trading name, doing business as Bankaltimtara, is an Indonesian regional development bank serving East Kalimantan and North Kalimantan. It was previously known as ''Bank Kaltim' ...

(

East Kalimantan East Kalimantan (Indonesian language, Indonesian: ) is a Provinces of Indonesia, province of Indonesia. Its territory comprises the eastern portion of Borneo/Kalimantan. It had a population of about 3.03 million at the 2010 census (within the cu ...

and

) * Bank Kalteng (

Central Kalimantan Central Kalimantan () is a provinces of Indonesia, province of Indonesia. It is one of five provinces in Kalimantan, the Indonesian part of Borneo. It is the largest province in Indonesia by area since 2022, bordered by West Kalimantan to the west ...

) * Bank Kalbar (

West Kalimantan West Kalimantan () is a province of Indonesia. It is one of five Indonesian provinces comprising Kalimantan, the Indonesian part of the island of Borneo. Its capital and largest city is Pontianak. It is bordered by East Kalimantan and Central ...

) * Bank Kalsel (

South Kalimantan South Kalimantan () is a Provinces of Indonesia, province of Indonesia. It is the second most populous province on the island of Kalimantan, the Indonesian territory of the island of Borneo after West Kalimantan. The provincial capital was Banjar ...

) * Bank Lampung (

Lampung Lampung, officially the Province of Lampung (; ), is a province of Indonesia. It is located on the southern tip of the island of Sumatra. It has a short border with the province of Bengkulu to the northwest, and a longer border with the provi ...

) * Bank Maluku Malut (

Maluku Maluku may refer to: Places * Maluku Islands, an archipelago that is part of Indonesia ** List of the Maluku Islands * Maluku (province), a province of Indonesia comprising the central and southern parts of the archipelago * North Maluku, a provin ...

and

North Maluku North Maluku (; ) is a province of Indonesia. It covers the northern part of the Maluku Islands, bordering the Pacific Ocean to the north, the Halmahera Sea to the east, the Molucca Sea to the west, and the Seram Sea to the south. It shares marit ...

) * Bank NTB Syariah (

West Nusa Tenggara West Nusa Tenggara ( – NTB) is a provinces of Indonesia, province of Indonesia. It comprises the western portion of the Lesser Sunda Islands, with the exception of Bali which is its own province. The area of this province is which consists of ...

) * Bank NTT (

East Nusa Tenggara East Nusa Tenggara (; ) is the southernmost province of Indonesia. It comprises the eastern portion of the Lesser Sunda Islands, facing the Indian Ocean in the south and the Flores Sea in the north, with a total land area of 47,238.07 km2. It cons ...

) * Bank Papua ( Papua,

Central Papua Central Papua, officially the Central Papua Province () is an Indonesian Provinces of Indonesia, province located in the central region of Western New Guinea. It was formally established on 25 July 2022 from the former eight western regencies of ...

Highland Papua Highland Papua () is a provinces of Indonesia, province of Indonesia, which roughly follows the borders of the Papuan customary region of Lano-Pago (often shortened to La Pago). It covers an area of and had a population of 1,467,050 according to ...

South Papua South Papua, officially the South Papua Province (), is an Indonesian Provinces of Indonesia, province located in the southern portion of Western New Guinea, Papua, following the borders of the Papuan customary region of Anim Ha. Formally establ ...

Southwest Papua Southwest Papua (; ) is the 38th provinces of Indonesia, province of Indonesia to be created, and was split off from West Papua (province), West Papua on 8 December 2022. Despite being named "southwest", this is actually a misnomer and this prov ...

, West Papua) * BRK Syariah (

Riau Islands The Riau Islands () is a provinces of Indonesia, province of Indonesia consisting of a group of islands located in the western part of the country. It was established in 2002 after being separated from the neighboring Riau Province. The capit ...

and

Riau Riau (Jawi script, Jawi: ) is a Provinces of Indonesia, province of Indonesia. It is located on the central eastern coast of the island of Sumatra, and extends from the eastern slopes of the Barisan Mountains to the Malacca Strait, including s ...

) * Bank Sultra (

Southeast Sulawesi Southeast Sulawesi (, ; often abbreviated to Sultra, ), is a province on the island of Sulawesi, forming the southeastern peninsula of that island, together with a number of substantial offshore islands such as Buton, Muna, Kabaena and Wawon ...

) * Bank Sulteng (

Central Sulawesi Central Sulawesi (Indonesian language, Indonesian: ''Sulawesi Tengah'') is a Provinces of Indonesia, province of Indonesia located at the centre of the island of Sulawesi. The administrative capital and largest city is located in Palu. The provin ...

) * BSG (

North Sulawesi North Sulawesi () is a Provinces of Indonesia, province of Indonesia. It is mainly located on the Minahasa Peninsula of the island of Sulawesi, south of the Philippines and southeast of Sabah, Malaysia, but also includes various small archipel ...

and

Gorontalo Gorontalo ( Gorontaloan: ''Hulontalo'') is a province of Indonesia on the island of Sulawesi. Located on the Minahasa Peninsula, Gorontalo was formerly part of the province of North Sulawesi until its inauguration as a separate province on 5 De ...

) * Bank Sulselbar (

South Sulawesi South Sulawesi () is a Provinces of Indonesia, province in the South Peninsula, Sulawesi, southern peninsula of Sulawesi, Indonesia. The Selayar Islands archipelago to the south of Sulawesi is also part of the province. The capital and largest ci ...

and

West Sulawesi West Sulawesi (), covering a land area of 17,152.99 km2 with its capital at Mamuju, is a province of Indonesia on the western side of Sulawesi (formerly Celebes) island, consisting 6 regencies ('' kabupaten''), namely Polewali Mandar, Ma ...

) * Bank Nagari (

West Sumatra West Sumatra () is a Provinces of Indonesia, province of Indonesia. It is on the west coast of the island of Sumatra and includes the Mentawai Islands off that coast. West Sumatra borders the Indian Ocean to the west, as well as the provinces of ...

) * Bank Sumsel Babel (

South Sumatra South Sumatra () is a Provinces of Indonesia, province of Indonesia, located in the southeast of the island of Sumatra. The capital and largest city of the province is the city of Palembang. The province borders the provinces of Jambi to the north ...

and

) * Bank Sulut (

North Sumatra North Sumatra () is a Provinces of Indonesia, province of Indonesia located in the northern part of the island of Sumatra. Its capital and largest city is Medan on the east coast of the island. It borders Aceh to the northwest, Riau to the sou ...

) * Bank BPD DIY (

Special Region of Yogyakarta The Special Region of Yogyakarta is a province-level special region of Indonesia in southern Java. It is a semi-enclave that is surrounded by on the landward side by Central Java Province to the west, north, and east, but has a long coastline ...

)

References

{{Economy of Indonesia Banks of Indonesia