Bank Jatim Welcomes Working Visit from Banten Provincial Government and Bank Banten, Discusses Potential Business Synergy
Date: 26 july 2024Categories :
SURABAYA, July 26, 2024 – On Friday (July 26), the Provincial Government of Banten and PT Bank Pembangunan Daerah Banten (Perseroda) Tbk conducted a working visit to PT Bank Pembangunan Daerah Jawa Timur Tbk (bankjatim) to discuss follow-up plans regarding the Bank Business Group (Kelompok Usaha Bank or KUB) initiative and to strengthen potential business synergy between the two regional development banks (BPDs). Held at Ruang Bromo, Bank Jatim Head Office, the event was attended by Acting Governor of East Java, Adhy Karyono, Acting Governor of Banten, Al Muktabar, board of commissioners and directors from bankjatim and Bank Banten.
In his opening remarks, President Director of bankjatim, Busrul Iman, stated that the KUB process with Bank Banten is progressing positively. It began with the signing of a Memorandum of Understanding (MoU) followed by a feasibility study and assessment.
“We now need to move forward with the due diligence process so that the KUB can be properly realized. We will also include the KUB plan in the agenda for our next General Meeting of Shareholders (GMS),” he said.
Busrul noted that the presence of the Acting Governor of Banten and Bank Banten’s management signifies their strong commitment to the advancement of Bank Banten. He emphasized that the KUB initiative provides a valuable platform for collaboration and positive synergy.
“Both bankjatim and Bank Banten have regional strengths that can be jointly developed. The benefits will not only impact both banks but also extend to the communities in East Java and Banten. Hopefully, this noble intention to form a KUB will materialize successfully,” he said.
bankjatim is currently strengthening its digital banking ecosystem to improve customer convenience. One notable achievement is the integration of the Siskeudes Link across 2,086 villages. Siskeudes Link is a cash management and village financial system application for non-cash village expenditures integrated with the Ministry of Home Affairs.
bankjatim has also integrated with the SIPD (Regional Government Information System) to standardize and unify financial systems across regional governments, covering operational, capital, emergency, and transfer expenditures. So far, 18 out of 39 local governments in East Java have adopted the SIPD integration.
Another innovation from bankjatim is the QRIS Generator for parking, a static QRIS code embedded with parking rates suitable for motorcycle (R2) and car (R4) parking. This innovation simplifies payment for parking attendants and visitors, providing real-time transactions with detailed reports simply by scanning the QRIS code using mobile banking.
President Director of Bank Banten, Muhammad Busthami, stated that the KUB process with bankjatim has been progressing as intended. Starting with the MoU signed on March 4, 2024, followed by the signing of an NDA, the current phase involves a feasibility study conducted by LPPI at the request of bankjatim.
“This process is not only in response to POJK Regulation No. 12 of 2020 regarding minimum core capital requirements, but also to explore potential business synergies between Bank Banten and bankjatim,” he said. He also noted that the collaboration aligns with the socio-cultural and religious ties between East Java and Banten.
Busthami expressed hope for strengthened cooperation between the two banks, with accelerated business development and adherence to all applicable regulations.
“Hopefully, Banten’s business potential can be jointly managed with bankjatim, and in return, Bank Banten can learn from and synergize with bankjatim—especially in the area of digital banking ecosystems. Together, we can accelerate welfare improvements for the people of both provinces,” he stated.
It is noted that Banten’s economic growth in Q4 2023 reached 4.85% YoY, and in 2023, Banten ranked 5th nationally in investment value. The province is also home to 4 state-owned enterprises (BUMN) and 3,399 medium-large companies, along with 6,032 Islamic boarding schools (pesantren) and 429,000 students (santri).
Banten also holds significant loan potential across regency, city, and provincial levels. There are 82,850 civil servants (PNS & PPPK) and 295 DPRD members, showing vast potential for credit financing. Recently, Lebak Regency officially moved its Regional General Treasury Account (RKUD) to Bank Banten. In Q3 2024, four additional regencies/cities are expected to transfer RKUD management to Bank Banten.
Adhy Karyono noted that the presence of Banten’s Acting Governor at bankjatim reflects serious intent following the MoU signing at Hotel Borobudur.
“We’re aware that Banten is preparing to expand beyond even West Java and Jakarta,” he said. The KUB initiative is a response to OJK Regulation No. 12/POJK.03/2020, which mandates that regional banks must meet a minimum core capital of IDR 3 trillion by December 31, 2024.
However, Adhy emphasized that the collaboration goes beyond merely complying with POJK.
“This regulation is not our sole purpose. We want our KUB plan to provide even greater value. We are optimistic this partnership will be mutually beneficial. Banten's market potential is huge, especially in Tangerang Regency, Tangerang City, South Tangerang, and Serang City,” he said.
Adhy urged both banks to build mutual trust. He hopes bankjatim can go above and beyond—not only helping Bank Banten reach the IDR 3 trillion capital target but also bringing its product packages into implementation.
“When Bank Jatim and Bank Banten eventually unite, there will be many business opportunities to capture. This partnership could significantly improve assets, management quality, capacity, accountability, and ultimately profit and local revenue (PAD),” he concluded.
Meanwhile, Al Muktabar emphasized that the cooperation between East Java and Banten is also in line with President Joko Widodo’s directive to prevent any regional bank from failing.
“The goal is to ensure regional banks can continue to survive,” he said.
The existence of BPDs is vital to maintaining liquidity at the regional level and generating value and profit. Therefore, the KUB initiative is crucial to reinforce regional financial stability.
“We are grateful for the warm welcome from East Java’s officials. Hopefully, this KUB between Bank Banten and Bank Jatim will bring blessings not only to both banks but also to the communities of both provinces,” Al Muktabar concluded.
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