Bank Jatim Reports Positive Performance: Credit Distribution Increases 20.13%.
Date: 29 october 2024Categories :
This is the complete translation of the press release into professional corporate English, specifically tailored for a financial or banking context.
SURABAYA, October 29, 2024. PT Bank Pembangunan Daerah Jawa Timur Tbk (bankjatim) successfully recorded a positive performance throughout the second and third quarters of 2024. This achievement was highlighted during the bankjatim Public Expose held on Tuesday (29/10). Conducted via Zoom, the presentation was attended by the President Director, Busrul Iman, along with the Board of Directors, including the Directors of Micro, Retail & Medium Business, Finance, Treasury & Global Services, Risk Management, IT & Digital, Operations, and Compliance.
Busrul explained that despite a relatively stagnant and uncertain global economic outlook, Indonesia's economy grew by 5.05% (YoY) in the second quarter of 2024, bolstered by robust domestic demand and increased export performance. East Java's regional economy recorded a growth of 4.98% (YoY), an improvement from the 4.81% (YoY) recorded in the previous quarter. This upturn was driven by rising external demand and improved manufacturing activities in East Java’s primary trading partners, such as China, Japan, and Malaysia.
Correspondingly, bankjatim (BJTM) also posted positive growth. In Q2 2024, the bank's total assets stood at IDR 101.24 trillion, rising to IDR 106.63 trillion by Q3 2024. Furthermore, credit disbursement in Q2 2024 reached IDR 58.07 trillion, an 18.01% (YoY) increase. By the following quarter, credit distribution surged to IDR 62.19 trillion, marking a significant growth of 20.13% (YoY).
The consumer credit portfolio reached IDR 31.74 trillion (+8.82% YoY) in Q2 and IDR 33.79 trillion (+13.20% YoY) in Q3. Meanwhile, the productive credit portfolio stood at IDR 26.32 trillion (+31.37% YoY) in Q2 and IDR 28.40 trillion (+29.57% YoY) in Q3. To maximize credit disbursement, BJTM implemented a strategy involving the repositioning of Account Officer formations across all segments and active periodic monitoring, which resulted in a maximum impact on the productive sector.
"In managing our business for the second half of this year, we have identified several strategies that could yield significant effects. For instance, we are paying close attention to the new government's flagship programs, such as the free school meal program, civil servant (ASN) salary increases, and housing development projects. These programs are expected to create a multiplier effect on economic growth by involving real-sector actors. bankjatim is positioned within this ecosystem to seize strategic opportunities," Busrul elaborated.
Additionally, the Financial Services Authority (OJK) recently launched the 2024–2027 Roadmap for Regional Development Banks (BPD) to transform them into highly competitive and resilient institutions that contribute significantly to sustainable regional economic growth. Busrul noted that BPDs generally face several structural and external challenges.
"BPDs must transform to address structural weaknesses and strengthen organizational foundations to compete and play a larger role in the regional economy. Our significant contribution can be realized through synergy with government programs via digital platforms and by increasing credit allocation to productive sectors," Busrul stated.
Since two years ago, bankjatim has initiated a shift through the implementation of the "5 Strategic Pillars Transformation," aligning with OJK’s BPD Roadmap. Management continues to strive for growth on both regional and broader scales. Leveraging its privileged market position within the government ecosystem, BJTM has expanded its business scope. "We have implemented digital-based services for local governments and their downstream ecosystems using a B2B approach that benefits all parties. As of June 2024, bankjatim has supported the digital implementation of the Local Government Information System (SIPD) across 18 local governments in East Java," Busrul explained.
In 2024, bankjatim also expanded its resilient captive market, targeting domains such as regional infrastructure, Regional Public Service Agencies (BLUD), and state-owned legal entities (Universities). These initiatives aim to strengthen the company’s position and broaden business coverage to remote areas. Furthermore, bankjatim is prepared to facilitate synergies with regional government-owned rural banks (BPR). Through the APEX BPR Bank Jatim model, BJTM acts as a "mother bank" for BPRs in East Java.
Currently, APEX BPR Bank Jatim consists of 98 member BPRs (both government and non-government owned), with total outstanding loans for government-owned BPRs reaching IDR 22.7 billion. "APEX BPR serves as the initial capital for bankjatim to respond to the BPD Roadmap by synergizing with financial institutions in the regional area," Busrul added.
To further strengthen the Indonesian banking foundation, bankjatim has actively pursued the Bank Business Group (KUB) process. As of September 2024, ten BPDs have expressed interest in joining the KUB. Three have already joined bankjatim—Bank NTB Syariah, Bank Lampung, and Bank Banten—while two others are currently in the process. bankjatim's active participation in the KUB highlights its strong business, financial, and human capital standing.
On the digital front, the utility of JConnect services has seen massive growth. By Q3 2024, JConnect Mobile reached 756,587 users (+27.35% YoY), with transaction values hitting IDR 5.63 trillion (+53.23% YoY). "Meanwhile, JConnect QRIS reached 174,185 users (+72.73% YoY) with transaction values of IDR 130.52 billion, a 204.87% (YoY) increase," Busrul noted. To maximize services in high-potential areas, BJTM also leverages AGEN JATIM, which contributes to credit growth through referral methods. AGEN JATIM currently has 14,032 agents, growing 147.52% (YoY).
In addition to positive financial performance, as of Q3 2024, bankjatim has received numerous accolades, including the Indonesia Public Relations Awards (IPRA) 2024, Top BUMD Award 2024, Digital Technology & Innovation Awards 2024, and the Indonesia Financial Top Leader Awards 2024, among others.
PT BANK PEMBANGUNAN DAERAH JAWA TIMUR Tbk
Jl. Basuki Rahmat 98-104 Surabaya
T : (031) 5310090-99 ext 471
F : (031) 5310838