Finance Minister Targets Clean BPDs for Fresh Funds

JAKARTA, Oct 14, 2025 – Finance Minister Purbaya Yudhi Sadewa announced that fresh government funds will be allocated to regional development banks (BPDs) after a careful selection. He said the banks must be free of legal disputes and show strong performance. The remarks were made on Tuesday, Oct 14, 2025.

Purbaya responded to concerns about the risk of placing funds in BPDs, stating that a BPD’s credibility reflects the local government’s ability to safeguard the money. If a BPD cannot disburse the funds, the central government may cut regional transfer payments (TKD), including general, special, or profit‑sharing allocations. Bank Jatim and Bank DKI have expressed interest, while discussions with BJB have not yet occurred.

The move follows an earlier shift that moved Rp200 trillion from Bank Indonesia to state‑owned banks. By limiting allocations to vetted BPDs, the government aims to protect public funds and prevent reductions in regional budgets. The policy could shape future funding flows to BPDs and local government performance.