Regional Development Banks ( id, Bank Pembangunan Daerah, 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 may refer to: Common uses * Capital city, a municipality of primary status ** List of national capital cities * Capital letter, an upper-case letter Economics and social sciences * Capital (economics), the durable produced goods used f ...

to the province that private banks 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 (sometimes called a ministry of internal affairs or ministry of home affairs) is a government department that is responsible for internal affairs. Lists of current ministries of internal affairs Named "ministry" * Ministry ...

. 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 administrative leader and head of a polity or political region, ranking under the head of state and in some cases, such as governors-general, as the head of state's official representative. Depending on the type of political ...

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 financial regulation, regulation of the financial services industry in the United Kingdom between 2001 and 2013. It was founded as the Securities and Investmen ...

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

North Kalimantan North Kalimantan ( id, Kalimantan Utara) is a 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 Sarawak t ...

and the Bangka Belitung Islands, 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. It includes all as ...

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 ( ), officially the Aceh Province ( ace, Nanggroë Acèh; id, Provinsi Aceh) is the westernmost province of Indonesia. It is located on the northernmost of Sumatra island, with Banda Aceh being its capital and largest city. Granted a s ...

) * Bank BPD Bali (

Bali Bali () is a 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 neighbouring islands, notably Nusa Penida, Nusa Lembongan, and Nu ...

) * Bank Bengkulu ( Bengkulu) * Bank DKI (

Jakarta Jakarta (; , bew, Jakarte), officially the Special Capital Region of Jakarta ( id, Daerah Khusus Ibukota Jakarta) is the capital and largest city of Indonesia. Lying on the northwest coast of Java, the world's most populous island, Jakarta ...

) * Bank Jambi (

Jambi Jambi is a province of Indonesia. It is located on the east coast of central Sumatra and spans to the Barisan Mountains in the west. Its capital and largest city is Jambi. The province has a land area of 50,160.05 km2, and a sea area of 3, ...

) * Bank Banten ( Banten) * Bank Jateng (

Central Java Central Java ( id, Jawa Tengah) is a 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 Yogyakarta in t ...

) * Bank BJB (

West Java West Java ( id, Jawa Barat, su, ᮏᮝ ᮊᮥᮜᮧᮔ᮪, romanized ''Jawa Kulon'') is a province of Indonesia on the western part of the island of Java, with its provincial capital in Bandung. West Java is bordered by the province of Banten ...

) * Bank Jatim (

East Java East Java ( id, Jawa Timur) is a Provinces of Indonesia, province of Indonesia located in the easternmost hemisphere 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 bord ...

) * Bankaltimtara ( East Kalimantan and

) * Bank Kalteng ( Central Kalimantan) * Bank Kalbar ( West Kalimantan) * Bank Kalsel (

South Kalimantan South Kalimantan ( id, Kalimantan Selatan) is a Provinces of Indonesia, province of Indonesia. It is the smallest province in Kalimantan, the Indonesian territory of Borneo. The provincial capital was Banjarmasin until 15 February 2022 when it wa ...

) * Bank Lampung ( Lampung) * Bank Maluku Malut ( Maluku and North Maluku) * Bank NTB ( West Nusa Tenggara) * Bank NTT ( East Nusa Tenggara) * Bank Papua ( Papua and West Papua) * BRK Syariah (

Riau Islands The Riau Islands ( id, Kepulauan Riau) is a province of Indonesia. It comprises a total of 1,796 islands scattered between Sumatra, Malay Peninsula, and Borneo including the Riau Archipelago. Situated on one of the world's busiest shipping la ...

and

Riau Riau is a province of Indonesia. It is located on the central eastern coast of Sumatra along the Strait of Malacca. The province shares land borders with North Sumatra to the northwest, West Sumatra to the west, and Jambi to the south. Accord ...

) * Bank Sultra (

Southeast Sulawesi Southeast Sulawesi ( id, Sulawesi Tenggara) 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 Wawonii (formerly ca ...

) * Bank Sulteng (

Central Sulawesi Central Sulawesi (Indonesian: ''Sulawesi Tengah'') is a province of Indonesia located at the centre of the island of Sulawesi. The administrative capital and largest city is located in Palu. The 2010 census recorded a population of 2,635,009 for ...

) * BSG (

North Sulawesi North Sulawesi ( id, Sulawesi Utara) is a province of Indonesia. It is located on the Minahasa Peninsula of Sulawesi, south of the Philippines and southeast of Sabah, Malaysia. It borders the Philippine province of Davao Occidental and Soccsks ...

and

Gorontalo Gorontalo (Gorontalo language, Gorontaloan: ''Hulontalo'') is a Provinces of Indonesia, 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 ...

) * Bank Sulselbar (

South Sulawesi South Sulawesi ( id, Sulawesi Selatan) is a province in the southern peninsula of Sulawesi. The Selayar Islands archipelago to the south of Sulawesi is also part of the province. The capital is Makassar. The province is bordered by Central Sula ...

and West Sulawesi) * Bank Nagari (

West Sumatra West Sumatra ( id, Sumatra Barat) is a Provinces of Indonesia, province of Indonesia. It is located on the west coast of the island of Sumatra and includes the Mentawai Islands off that coast. The province has an area of , with a population of 5, ...

) * Bank Sumsel Babel ( South Sumatra and Bangka Belitung Islands) * Bank Sulut (

North Sumatra North Sumatra ( id, Sumatra Utara) is a province of Indonesia located on the northern part of the island of Sumatra. Its capital and largest city is Medan. North Sumatra is Indonesia's fourth most populous province after West Java, East Java and ...

) * Bank BPD DIY ( Special Region of Yogyakarta)

References

{{Reflist Banks of Indonesia