Indonesia's state banks urged to prioritize productive sectors

Jakarta (ANTARA) - Indonesia's State-Owned Enterprises Regulatory Agency (BP BUMN) has designated manufacturing, natural resource downstreaming, infrastructure development, and micro, small, and medium enterprises (MSMEs) as priority financing sectors for state-owned banks.

"Financing support must continue to be directed toward productive sectors that can create jobs, enhance competitiveness, and generate tangible benefits for the public," BP BUMN Head Dony Oskaria said in a statement on Tuesday.

He added that sectors with strong multiplier effects on the national economy would also remain financing priorities for state-owned banks.

According to Dony, the priorities form part of the government's broader strategy to strengthen the banking sector's role in supporting national development and economic growth.

The directive was conveyed during a meeting with president commissioners and president directors of state-owned banks grouped under the Association of State-Owned Banks (Himbara) on Monday.

The meeting also reviewed the performance of state-owned banks.

Dony, who also serves as a senior official at sovereign wealth fund Danantara, emphasized that the positive performance recorded by Himbara banks remains an important foundation for financial system stability and national economic activity.

He encouraged state-owned banks to strengthen their contribution to development through productive, inclusive financing that generates added value for the economy.

"State-owned banks play a strategic role in driving economic growth," he said.

The meeting also discussed efforts to strengthen governance, risk management, and strategies to maintain the resilience and competitiveness of state-owned banks amid evolving global and domestic economic conditions.

BP BUMN, Danantara, and Himbara banks reaffirmed their commitment to ensuring state-owned banks continue to grow in a healthy, professional, and sustainable manner.

Strong synergy among shareholders, boards of commissioners, and management is expected to strengthen banks' intermediary role and support the acceleration of national development targets.

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Translator: Putu Indah, Tegar Nurfitra

Editor: Anton Santoso

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