REPUBLIKA.CO.ID, JAKARTA -- Regional Development Banks (BPDs) which are owned by regional administrations all over Indonesia, recorded a 11.72 percent increase year-on-year in outstanding credits in 2014.

"In 2014, the outstanding credits of BPDs reached Rp289.84 trillion in the aggregate from Rp255.88 trillion in 2013," general chairman of the Association of Regional Development Banks (Asbanda) Eko Budiwiyono said here on Wednesday.

Eko said BPDshave performed well in the past five years recording significant growth from year to year.

He said the amount of third party funds held by BPDs also increased , up 13.83 percent to Rp328.38 trillion in 2014 from Rp282.98 trillion in 2013.

Increase was also recorded in core capital reaching Rp43.65 trillion in 2014 , up 11.87 percent from Rp38.47 trillion in the previous year.

The assets of BPDs increased 12.55 percent from Rp390.17 trillion, Eko said.

He said BPDs have indicated ambition to be champion in their respective regions.

"Asbanda is autonomous and gives priority to cooperation between BPDs for national development. BPDs have to be leaders in their respective areas, and must be able to compete against other national and foreign banks," he said.

Earlier, president directors of all BPDs in Indonesia and the financial service authority (OJK)signed a cooperation agreement to improve the quality and competitiveness of BPDs.

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