Enhancing The Performance of Regional Development Banks

Abstract

The roles of Regional Development Banks (BPD) in Indonesia are as financial intermediaries and as drivers of the respective regional economy. These roles can be performed optimally if there are synergies undertaken by all stakeholders. This study is expected to contribute to BPD stakeholders in optimizing performance. This research used mixed methods which started with a quantitative process to analyze questionnaire data and secondary data of 26 BPDs. The qualitative process is carried out by in-depth confirmation through interviews of BPD leaders, employees, and customers. In addition to the confirmation, Focus Group Discussions (FGDs) are conducted with BPD officers, the Association of Regional Banks (Asbanda) and the Financial Service Authority (OJK) using the Balanced Scorecard (BSC). The important finding in this research is the performance of an internal process which gives a high perceived value of customer and determined the success of BPDs.