Indonesian Regional Banks' Q3 2025 Performance Highlights

Mixed Financial Results Across Regional Banks

Indonesian regional development banks (BPD) have released their Q3/2025 financial reports, showing varied performance across different regions. PT Bank Pembangunan Daerah Jawa Tengah (Bank Jateng) reported a net profit for the year to date of Rp1.06 trillion in Q3/2025, representing a 3.25% year-on-year (YoY) increase from Rp1.02 trillion in the same period last year. The bank's interest income reached Rp5.71 trillion, up 6.99% YoY from Rp5.34 trillion, while interest expenses rose by 16.17% YoY to Rp2.12 trillion from Rp1.83 trillion. Consequently, Bank Jateng's net interest income was Rp3.58 trillion, a 2.19% YoY increase from Rp3.51 trillion.

Key Highlights from Major Regional Banks

• PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk. (BJBR) recorded a net profit for the year to date of Rp1.14 trillion as of September 2025.
• BJBR's interest income was Rp12.78 trillion in Q3/2025, up from Rp11.62 trillion in the same period last year.
• The bank's interest expenses were Rp7.27 trillion, resulting in a net interest income of Rp5.5 trillion, up from Rp4.8 trillion in Q3/2024.
• Bank Sumselbabel reported assets of Rp39.8 trillion, with loan disbursement and financing reaching Rp25.7 trillion and Third-Party Funds (DPK) growing to Rp32 trillion.
• The bank recorded a net profit of Rp521 billion from these activities.

Analysis and Outlook

Trioksa Siahaan, Head of Research at the Indonesian Banking Development Institute (LPPI), noted that some regional banks, such as BPD Bali and Bank Jateng, recorded performance growth, while others reported a decline in profits. The primary factors behind the improved performance include operational efficiency and reduction in Allowance for Impairment Losses (CKPN) due to improved credit quality. BPDs primarily target civil servants (ASN), indicating strong business fundamentals. Analysts believe that as long as BPDs maintain operational efficiency and play a role in regional development, their prospects remain positive, which can also boost regional economies.