Business · Companies · 17 hrs ago
Regional Banks in Indonesia Seek More Sources of Funding
Indonesia’s regional development banks are seeking broader funding sources beyond civil-servant payrolls.
Bank Bengkulu chief executive Iswahyudi said salary payments help bring in deposits and support loans to civil servants.
But much of that salary money is quickly used to repay loans, limiting how much stays in the banks as deposits.
Banks can also draw funds from local government accounts, including project funds and current accounts.
They are being urged not to rely on local government budgets as transfers to regional governments are being cut.
Digital financial services could help attract more everyday customers and meet their banking needs.
The discussion also covered how regional banks could develop their businesses, including lending to small and medium-sized businesses.
Indonesia’s regional development banks are being urged to broaden their funding sources beyond civil-servant payrolls and regional government funds.
Bank Bengkulu’s chief executive said civil-servant payrolls support deposits and lending but are largely used to repay loans.
Regional banks are seeking deposits through regional government cash-account ecosystems, including project funds and government current accounts.
They are also encouraged to improve digital transaction services to attract ordinary customers.
The call comes amid cuts to transfers from the central government to regional governments.
- Who
- Indonesia’s regional development banks, including Bank Bengkulu.
- What
- They are seeking to broaden funding and liquidity sources beyond civil-servant payrolls and regional government budgets.
- When
- The interview aired on October 13, 2026; the article was published on October 17, 2026.
- Where
- Indonesia.
- Why
- Payroll funds are largely used to repay civil-servant loans, and regional banks face cuts to central-government transfers.
This story does not have two clearly opposing sides.
Shania Alatas interviewed Bank Bengkulu president director Iswahyudi on Power Lunch.
CNBC Indonesia published the article about regional banks seeking broader funding sources.
- Interview guest
- Iswahyudi, Bank Bengkulu president director
- Interview date
- October 13, 2026
- Publication date
- October 17, 2026
- Potential deposit sources
- Regional government projects and current accounts
- Suggested customer strategy
- Improve digital transaction features
What people are saying
Payroll ASN atau pembayaran gaji ASN disebut Direktur Utama Bank Bengkulu memiliki peran besar bagi Bank Pembangunan Daerah (BPD)karena terkait sumber pihak ketiga (DPK) maupun terkait dengan kredit ASN.