Bank Jatim and Bank Sultra Officially Establish Strategic KUB Synergy
Date: 15 november 2024Categories :
SURABAYA, November 15, 2024. The Southeast Sulawesi Regional Development Bank (Bank Sultra) has officially become the fifth bank to establish a Bank Business Group (KUB) commitment with PT Bank Pembangunan Daerah Jawa Timur Tbk (bankjatim). This milestone was marked by the signing of a Memorandum of Understanding (MoU) regarding the Business Cooperation Plan and the Formation of a Bank Business Group, in compliance with OJK Regulation No. 12/POJK.03/2020. Held at the Bromo Room of the bankjatim Head Office, the MoU was signed by bankjatim President Director Busrul Iman and Bank Sultra President Director Abdul Latif on Friday (15/11). The event also featured the signing of a Non-Disclosure Agreement (NDA), witnessed by the Head of the East Java Economic Bureau, Kombong Pasulu, and the Provincial Secretary of Southeast Sulawesi, Asrun Lio.
Busrul explained that this collaboration serves as a follow-up to regulatory requirements regarding banking consolidation. As a leading Regional Development Bank (BPD), bankjatim recognizes its obligation to synergize with fellow BPDs to bolster regional economies. ”In the banking industry, our competitors are not just other BPDs, but also private institutions and state-owned banks (Himbara). Therefore, BPDs must remain solid to emerge as leaders in our respective regions. Fighting alone results in slow progress; collaboration through KUB is the essential solution,” he elaborated.
Busrul expressed confidence that the KUB between bankjatim and Bank Sultra will provide significant value-added benefits for both institutions, ultimately driving regional economic growth and benefiting shareholders and stakeholders alike. ”The scope of our KUB collaboration extends beyond capital participation or liquidity. There is vast business potential to be explored, especially since East Java and Surabaya serve as the primary economic hub for Central and Eastern Indonesia. The potential for synergy is immense,” Busrul emphasized.
Furthermore, Busrul expressed appreciation for the Financial Services Authority (OJK) for providing a collaborative framework through the KUB scheme. He views KUB as a bridge to foster mutually beneficial cooperation. ”We hope this KUB will bring collective benefits—not just in terms of structural reinforcement, but also in increasing economies of scale, operational efficiency, and broader business cooperation,” he added.
bankjatim brings extensive experience and a deep understanding of the KUB process, having already integrated four other banks: Bank NTB Syariah, Bank Lampung, Bank Banten, and Bank NTT. Additionally, bankjatim has successfully navigated the transformation from a conventional BPD business model to an advanced, digitally-driven system. By sharing this expertise with KUB members, bankjatim aims to enhance the competitiveness of all partner banks, improve public services, and drive regional development—particularly in empowering the MSME sector and financing sustainable infrastructure projects.
The Provincial Secretary of Southeast Sulawesi, Asrun Lio, stated that the collaboration is expected to bring prosperity to both regions. ”We convey our deepest appreciation to the East Java Provincial Government and bankjatim for welcoming Bank Sultra into the KUB. We believe this strategic step will have a positive impact on capital strengthening, increased competitiveness, and the expansion of banking services for both institutions,” he remarked.
The Southeast Sulawesi Provincial Government fully supports the ongoing and future steps of this partnership. ”This MoU and NDA represent the initial stage of the KUB formation. Further details regarding control and governance will be finalized in the Shareholder Agreement (SHA). We hope that through this KUB synergy, bankjatim and Bank Sultra can advance together,” he concluded.
PT BANK PEMBANGUNAN DAERAH JAWA TIMUR Tbk
Jl. Basuki Rahmat 98-104 Surabaya
T : (031) 5310090-99 ext 471
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