2024 EGM Concluded: Bank Jatim Further Strengthens the KUB Framework and Updates Board of Directors Nomenclature.
Date: 11 december 2024Categories :
SURABAYA, December 11, 2024. PT Bank Pembangunan Daerah Jawa Timur Tbk (bankjatim) has held its 2024 Extraordinary General Meeting of Shareholders (RUPSLB). Held at the Bromo Room, Bank Jatim Head Office, Surabaya, the EGM was attended in person by the Acting Governor of East Java, Adhy Karyono, representing the East Java Provincial Government as the controlling shareholder, along with the entire board of commissioners and directors of bankjatim on Wednesday (11/12).
The 2024 Bank Jatim EGM agenda consisted of two items:
-
Approval of the Company's Corporate Action;
-
Adjustment of the Company's Management Nomenclature.
Adhy Karyono stated that this EGM was held to follow up on OJK Regulation (POJK) Number 12/POJK.03/2020 concerning the consolidation of commercial banks. There is a regulation stating that as of January 1, 2025, banks—especially regional banks (BPD)—with core capital below IDR 3 trillion will automatically change status to Rural Banks (BPR). Certainly, BPR status for the government and shareholders would be highly influential. Therefore, the KUB (Bank Business Group) process is required so that the BPD status does not change to BPR.
"The formation of a Bank Business Group (KUB) will increase competitiveness and strengthen Bank Jatim's position in the national banking market. Consequently, the financial sector in East Java continues to show a stable and resilient trend. If we look, almost half of the BPD banks in the province have core capital below 3 trillion. This is actually an opportunity to open cooperation and consolidate simultaneously through KUB," he said.
Adhy also explained that during the first EGM, discussions covered KUB with Bank NTB Syariah, Bank Lampung, and Bank Banten. Furthermore, because the deadline for fulfilling POJK Number 12 of 2020 is until the end of this December 2024, the current EGM discussed capital participation with Bank Sultra and Bank NTT. This will be followed next week by signings with both banks. "Besides discussing KUB, this EGM will also follow up on OJK regulations for Sharia Business Units (UUS). Before we become a sharia bank, there must be a director-level institutional structure. Well, we are mandated to be more professional in accordance with OJK regulatory standards. Therefore, there is an agenda for the adjustment of management nomenclature," he asserted.
He advised that all processes related to steps to optimize a regional bank are very dependent on the support of shareholders, both series A and series B. "Therefore, let us synergize together for the progress of East Java province," he concluded.
Bank Jatim President Director Busrul Iman explained that bankjatim's performance in general until November 2024 showed positive figures. Bank Jatim's assets have reached IDR 109.09 trillion. Then, credit distribution itself stood at IDR 63.90 trillion. Meanwhile, Third-Party Funds reached IDR 87.96 trillion and profit was IDR 1.02 trillion.
Busrul explained that OJK has launched a roadmap for BPD for 2024–2027, which aims to transform BPDs across Indonesia into highly competitive institutions that contribute significantly to sustainable regional economic growth. This is in line with bankjatim's strategic policy implemented in the 5 Pillars of Transformation, which has been running since 2023. This strategy focuses on exponential growth to respond to dynamics in the financial industry and to realize the Company's vision to become the No. 1 BPD in Indonesia through the KUB capital participation corporate action.
"KUB is a game changer to strengthen the banking foundation in Indonesia, especially for BPDs. Bank Jatim’s active participation provides positioning that the bank has business, financial, and human capital strength to synergize with other BPDs to grow together," he stated.
To date, bankjatim has undergone the KUB process with 5 banks: Bank NTB Syariah, Bank Lampung, Bank Banten, Bank Sultra, and Bank NTT. Being trusted to cooperate with these 5 BPDs further strengthens its position as a bank with the capacity to lead synergy, efficiency, and competitiveness.
"Bank Jatim's initial strategy in the KUB formation process was carried out with capital participation of more than IDR 300 billion. By becoming the holding company in the KUB, bankjatim will create holistic synergy ranging from capital and business aspects to financial statement consolidation and other supporting aspects such as strengthening human capital and technology," said Busrul.
Regarding Bank NTB Syariah, the progress is currently in the preparation process for financial consolidation, which will be carried out in the Financial Statements for the December 2024 period. With Bank Lampung, bankjatim signed a Shareholder Agreement and Compliance Deed on November 08, 2024, and is now fulfilling licensing documents to OJK. Next with Bank Banten, bankjatim is conducting due diligence in finance, taxation, law, and information technology.
Busrul added that while continuing the 5 Pillars Transformation, the company is exploring KUB with Bank Sultra and Bank NTT. For Bank Sultra, an MoU and NDA were signed on November 15, 2024, and the bank is currently being studied by independent consultants. For Bank NTT, an MoU and NDA were signed on November 5, 2024, with a similar review process.
"In this 2024 EGM, all parties have agreed to conduct capital participation in Bank Sultra for a maximum of IDR 100 billion and in Bank NTT for IDR 50 billion to IDR 100 billion," Busrul emphasized.
With a spirit of collaboration and innovation, bankjatim continues to step forward as the KUB holding company, creating added value for customers, shareholders, and the community.
Meanwhile, Independent Commissioner Sumaryono noted that business dynamics in the financial industry are increasingly challenging. Furthermore, based on POJK No. 12 of 2023 regarding Sharia Business Units, it is mandatory to have one director overseeing the UUS. "Therefore, to focus more on business reinforcement, information technology reinforcement, and workload distribution, it is proposed in this EGM to change the nomenclature at the director level," he explained.
The composition of the Bank Jatim Board of Directors after the 2024 EGM:
-
President Director: Busrul Iman
-
Director of Micro, Retail & Sharia Business: R. Arief Wicaksono
-
Director of Risk Management: Eko Susetyono
-
Director of IT, Digital & Operations: Zulhelfi Abidin
-
Director of Medium, Corporate & Network Business: Arif Suhirman
-
Director of Finance, Treasury & Global Services: Edi Masrianto
-
Director of Compliance: Umi Rodiyah
PT BANK PEMBANGUNAN DAERAH JAWA TIMUR Tbk
Jl. Basuki Rahmat 98-104 Surabaya
T : (031) 5310090-99 ext 471
F : (031) 5310838