BJTM Strengthens Position as BPD Holding Bank through Strategic Capital Injection

Capital Injection to Regional Banks

PT Bank Pembangunan Daerah Jawa Timur Tbk (BJTM) has made a significant strategic move by injecting Rp200 billion into Bank Lampung and Bank Sulawesi Tenggara (Bank Sultra). This capital injection is part of BJTM's efforts to strengthen its position as the holding bank for regional development banks (BPD) under the financial consolidation framework.

Financial and Strategic Implications

According to M. Rizal Taufikurahman, Head of Macroeconomic and Finance Center at Indef, the capital injection, while relatively small compared to BJTM's assets and equity, is strategically important. It strengthens BJTM's role as the parent company of the BPD banking group (KUB). The move is expected to create opportunities for business ecosystem expansion, including digital services, joint financing, and potential fee-based income growth through better synergy among BPD members.

Market and Investor Implications

In the short term, the impact on BJTM's profitability may be limited. However, in the medium term, successful integration and synergy among the BPD members could lead to increased profitability. The market is likely to view this move positively as it signals strategic growth and potential for re-rating if BJTM maintains its return on capital and continues its tradition of high dividend payouts.

Regulatory Context and Implementation

The capital injection is in line with the Financial Services Authority (OJK) regulation No.12/POJK.03/2020 regarding bank consolidation. The injection was carried out on November 10 and 11, 2025, for Bank Sultra and Bank Lampung, respectively. This move not only strengthens the capital of the recipient banks but also paves the way for consolidated financial reporting in the future.