Bank Jatim Explore KUB Cooperation with Bank Banten, Offer KUB Fully Protection Concept Growing Together

Date: 04 march 2024

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JAKARTA, March 4, 2024 - PT Bank Pembangunan Daerah Jawa Timur Tbk (bankjatim) continues to make various breakthroughs in order to realize the company's business acceleration. After carrying out the Bank Business Group (KUB) process with Bank NTB Syariah and Bank Lampung some time ago, now the issuer with the BJTM code is again exploring KUB cooperation with Bank Banten.

Located at Borobudur Hotel, Central Jakarta, President Director of bankjatim Busrul Iman and President Director of Bank Banten Muhammad Busthami have officially signed an MoU related to the exploration of KUB in the Focus Group Discussion (FGD) of Fulfillment of Minimum Core Capital (MIM) of Regional Development Banks (BPD) and Regional Banking Consolidation on Monday (4/3). Also present to witness the signing procession was Pj. Governor of East Java Adhy Karyono and Pj. Governor of Banten Al Muktabar.

Adhy explained that cooperation between BPDs by strengthening capital and banking consolidation can be one way to deal with the current economic dynamics. Moreover, based on POJK 12/2020 concerning Commercial Bank Consolidation, BPDs are required to increase their core capital by at least Rp 3 trillion by December 31, 2024, or only have Rp 1 trillion as long as the BPD is effectively a member of the KUB. If this cannot be fulfilled, the BPD must adjust its business form to become a Rural Bank (BPR). Thus, BPDs that have core capital below Rp 3 trillion will be hunting for time because the fulfillment time is left about 9 months away.

Well, according to Adhy, bankjatim includes banks that fall into the category of banks with core capital between Rp 1 trillion to Rp 5 trillion. In fact, as of December 2023, bankjatim has a capital of Rp 11.541 trillion with Risk Weighted Assets (RWA) of Rp 44.897 trillion. Not only that, Bank Jatim's CAR ratio has also reached 25.71 percent as of December 2023. The East Java Provincial Government itself has series A authorized capital in bankjatim of 51.13 percent or around Rp 1,919,228,412,000.

For the KUB concept offered by bankjatim, continued Adhy, is fully protected growing together. That is, bankjatim will provide full support for liquidity and capital and run a mutually beneficial business synergy. "In essence, there must be compatibility. We both have requirements, but we do not make difficult conditions so that they are also not difficult. We help but still have to be accountable, the bank must be healthy, and professional so that we can both progress," he said.

Meanwhile, Busrul added, the spirit of KUB is the spirit of collaboration to synergize with each other. The goal is to increase the business base, expand consumer reach and distribution channels with the target of achieving accelerated growth. So it is hoped that the signing of the MoU related to the exploration of KUB with Bank Banten can be a part in order to strengthen collaboration.

"This MoU or Memorandum of Understanding is a moral bond for the parties, which is the basis for both parties to carry out the next stages of the process. We are ready to do business cooperation with Bank Banten on various sides. Starting from human capital, technology, to the business process," said Busrul.

In addition to Bank Banten, continued Busrul, currently bankjatim is also in the stage of completing the KUB process with Bank NTB Syariah. Then also in progress with Bank Lampung. "Well, now is doing the exploratory stage with Bank Banten. In essence, bankjatim still opens opportunities for cooperation with other BPDs in Indonesia in order to realize mutual progress that is mutually beneficial. Because, the KUB initiative is part of an ongoing effort to strengthen the position of BPD as a banking group in the national banking industry, "explained Busrul.

The benefits that can be provided by bankjatim to other BPDs that KUB with the bank arek-arek East Java is also not small. With its experience, bankjatim can transfer technology in the IT field to KUB members. In addition, it can also share credit funding that can have an impact on improving the performance of BPDs in KUB with bankjatim.