THERE is a misconception that must be corrected immediately: civil servant payroll is not merely an account into which salaries are deposited. For Regional Development Banks, or BPDs, payroll is a gateway into the regional economic ecosystem. It supports low-cost funds, transactions, consumer loans, mortgages, MSME financing, contractors, and ultimately dividends that return to regional governments.
If ASN (State Civil Apparatus) payroll is moved away from BPDs, the issue is therefore not simply how many accounts will be lost. The more important questions are how much regional liquidity will shift, how much lending capacity will decline, and how much economic activity will be lost from local circulation.
BPDs are part of the regional fiscal ecosystem. Regional governments receive dividends from BPDs. BPDs provide credit to local communities and businesses. Businesses create economic activity, which generates taxes and revenue. Part of that value ultimately returns to regional governments.
A study by Infobank Institute illustrates this chain as: Payroll → CASA → Liquidity → Credit → Economic Multiplier → Dividends/ PAD. Therefore, decisions regarding payroll should not stop at the question: “Which bank offers the lowest administrative fees?”
Payroll policy should therefore be assessed not only by administrative fees, but by its total economic value. The Infobank Institute study considers administrative efficiency together with BPD funding costs, declining lending capacity, lost dividends, and leakage from the local economic multiplier. Regional leaders need to consider the broader economic impact rather than savings from individual transactions alone.
At the same time, BPDs will not automatically collapse if ASN payroll moves elsewhere. According to the study material, as of June 2026 BPDs recorded a CAR of 26.19 percent, gross NPL of 3.26 percent, and net NPL of 1.27 percent. These figures indicate a risk of gradual erosion in resilience and profitability rather than an immediate solvency crisis.
The greater concern is gradual deterioration. CASA and average balances may decline, the cost of funds may rise, NIM may fall, and new lending may slow. Over time, profits and dividends could decline, putting pressure on regional own source revenue. A BPD may remain financially sound while gradually losing the capacity to serve as an engine of the regional economy.
For this reason, BPDs need to transform from Regional Government Banks into Regional Economic Banks. ASN payroll is only one source of strength. If that source becomes less secure, BPDs should build a broader business model with several new engines.
First, BPDs need stronger retail funding. They should seek deposits from the wider public, including communities, markets, and villages, rather than relying heavily on ASN employees and government funds. Second, they need to expand productive lending to MSMEs, regional industries, agriculture, trade, and local supply chains. The objective should be to finance activities that create jobs and added value, rather than relying mainly on consumer loans linked to payroll.
Third, BPDs need to strengthen transaction banking. They should participate more deeply in regional economic transactions and become important centers of the local digital payments ecosystem. If they can capture a broader share of regional transactions, the movement of payroll does not necessarily mean that regional money will leave with it.
This transformation requires vision, leadership, and a willingness to compete. BPDs need to become institutions that stand on their own strength and contribute directly to the regional economy. The possible loss of payroll can therefore become a reason to diversify, strengthen competitiveness, and build a more independent business model.
An era in which BPDs become the banks of the regional economy, the people’s banks.
However, moving civil servant salaries away from BPDs all at once would not be a prudent step. It would be tantamount to slowly driving a “nail” into the coffin of BPDs, given that loans to civil servants still account for 60–65 percent of BPDs’ outstanding loans.
This is an issue that deserves deeper discussion, and OJK, of course, must also recognize this reality. At this juncture, OJK should provide greater support to BPDs, which now need assistance in managing the transfer of civil servant payroll away from BPDs.
If ASN (State Civil Apparatus) payroll is moved away from BPDs, the issue is therefore not simply how many accounts will be lost. The more important questions are how much regional liquidity will shift, how much lending capacity will decline, and how much economic activity will be lost from local circulation.