LEADERSHIP CHALLENGES OF REGIONAL BANKS IN INDONESIA

Authors

  • Roberto Akyuwen Senior Executive Analyst of Financial Service Authority of Indonesia
  • Caroline Mangowal Founder and Director of RISE Research Indonesia

DOI:

https://doi.org/10.24002/kinerja.v23i1.2131

Abstract

Bank Pembangunan Daerah (BPD) or the Regional Development Bank of Indonesia is designed to be an agent for regional development with products and services that contribute to the improvement of employment, poverty, disparity, financial literacy and inclusion. However, regional government leaders often intervene with operations and decision making in the banks. To study the extent to which external factors influence leadership in the BPD, this qualitative study used secondary data from the Financial Service Authority or Otoritas Jasa Keuangan (OJK) combined with interviews with BPD leaders and stakeholders. The findings show that the interventions of the regional government leaders were highly influential and resulted in negative consequences on BPD management which directly or indirectly affected the performance of the banks. This study is expected to provide insights into measures which would promote the role of regional banks as a development agent. 

Keywords: development agent, interventions, leaderships, Regional Development Banks

 

References

Ajiboye, Olatunji Joseph, 2017. Effective Leadership Practices of Bank Leaders in Nigeria. Dissertation. Walden University.

Aunjum, Adeel Hussain, Ghulam Abbas, dan Muhammad

Sajid, 2017. Transformational Leadership and Employee Motivation in Banking Sector of Pakistan. Advances in

Economics and Business, 9(9), pp. 487-494.

Belias, Dimitrios dan Athanasios Koustelios, 2014. Transformational Leadership and Job Satisfaction in Banking Sector: A Review. International Review of Management and Marketing, 4(3), pp. 187-200.

Delic. Adisa, Emira Kozarevic, dan Mersiha Alic, 2017. Impact of Leadership Style on Bank Profitability: Case Study of a Bank in Bosnia and Herzegovina. Journal of Contemporary Management Issues.

Kehinde, J.S., C.A. Jegede, dan H.B. Akinlabi, 2012. Impact of Leadership Skill and Strategies on Banking Sector Performance: A Survey of Selected Consolidated Banks in Nigeria. Paper presented in International Trade & Academic Research Conference (ITARC), 7-8 November, London.

Laporan Tahunan Perbankan. 2015. Departemen Pengembangan dan Manajemen Krisis, Otoritas Jasa Keuangan.

Mohammad Naushad & Syed Abdul Malik. Corporate Governance and Bank Performance: A Study of Selected Banks in GCC Region. College of Business Administration, Salman bin Abdulaziz University, Al-Kharj, Kingdom of Saudi Arabia (KSA).

Perkembangan Pelaksanaan Program Transformasi BPD. Akyuwen, Roberto. Forum Sharing Session Transformasi Perbankan Berbasis Digital “Menuju BPD Jaman Now,”12 April, 2018

Program Transformasi BPD Menjadi Bank yang Kompetitif, Kuat dan Kontributif bagi Pembangunan Daerah. Materi Media Briefing Program Transformasi BPD, Otoritas Jasa Keuangan, 25 Mei, 2015.

Søreide, Tina. 2014. Drivers of Corruption: A Brief Review. World Bank Study. Washington, DC: World Bank.

Witts, Joseph Ochieng, 2016. The Role of Strategic Leadership in Banking Profitability. Dissertation. Walden University.

Zia, Adil, 2015. Transformational Leadership: A Study of Banking Sector in Saudi Arabia. Global Journal of Management and Business Research, 15(3), pp. 18-26.

Downloads

Published

2019-04-01

Issue

Section

Articles