OJK urges state banks to balance profit with prudent risk management in government projects

Dian Ediana Rae, head of OJK’s banking supervision, warned that state-owned banks should not pursue financing volume at the expense of risk oversight, insisting on transparent credit frameworks and reliable repayment streams. She highlighted the positive contribution of Himbara banks to several priority programs, including Smallholder Business Credit (KUR), mortgage assistance under the Three Million Houses plan, the Red and White Village Cooperatives (KDKMP), and the Free Nutritious Meals (MBG) initiative.

Rae noted that these efforts demonstrate the banking sector’s alignment with Indonesia’s development agenda while sustaining economic growth. Regarding KDKMP, she said OJK backs the Finance Minister’s repeated assurances that repayment commitments will be honored and that mechanisms for payment verification are being prepared. The regulator expressed optimism that documentation, guidelines and institutional roles are being clarified. Finally, Rae called for the banking sector to grow healthily by adhering to robust risk management and governance standards, ensuring continued support for national welfare projects.