The Indonesia Financial Services Authority published an update on Regional Development Banks, saying the sector remained solid through March 2026 amid stronger competition in the national banking industry and that it will continue implementing the Regional Development Bank Strengthening Roadmap 2024-2027. Total assets stood at IDR 1,036.51 trillion, up 3.20 percent year on year, while the capital adequacy ratio was 26.19 percent. Credit reached IDR 656.87 trillion in March 2026, up from IDR 562.85 trillion in December 2022 and 1.59 percent higher year on year, supported by deposit growth of 4.74 percent to IDR 782.04 trillion. Asset quality remained stable, with gross non-performing loans at 3.26 percent and net non-performing loans at 1.27 percent. The roadmap is built around four pillars covering structure and competitive advantages, digital transformation, the role of Regional Development Banks in regional and national economies, and licensing, regulation, and supervision. OJK highlighted capital strengthening through consolidation and minimum core capital rules as one result since the roadmap was issued, with the number of Regional Development Banks below the IDR 3 trillion minimum falling from 18 in 2019 to 10 at end-2024, all of which have formed banking business groups. OJK said it will continue overseeing implementation of the roadmap with stakeholders. It also pointed to Regional Development Banks' role in lending to micro, small and medium-sized enterprises, where the share of lending has remained around 16 to 18 percent of total credit over the past three years with stable asset quality, and said it will keep pushing the sector to finance productive and emerging areas including the green economy, regional downstream industries, sustainable tourism, and rural digitalisation.

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