Question 1

What is Bank Jatim?

Accepted Answer

Bank Jatim (PT Bank Pembangunan Daerah Jawa Timur Tbk) is a regional development bank owned by the East Java Provincial Government and municipal governments throughout East Java, Indonesia. As one of Indonesia's Bank Pembangunan Daerah (BPD), Bank Jatim plays a crucial role in supporting regional economic development by providing banking services primarily focused on East Java.

The bank serves both retail and commercial customers with a strong emphasis on financing small and medium enterprises (SMEs) and providing loans to civil servants. As of 2020, Bank Jatim operated through 48 branch offices, 172 sub-branch offices, 209 cash offices, and 777 ATMs predominantly located throughout East Java.

Question 2

When was Bank Jatim founded?

Accepted Answer

Bank Jatim was founded on August 17, 1961, under the name PT Bank Pembangunan Daerah Djawa Timur, established through notarial deed No. 91 by Notaris Anwar Mahajudin. The bank commenced commercial operations on August 15, 1961, following approval from the Minister of Finance of the Republic of Indonesia through Decision Letter No. BUM 9-4-5.

In 1976, pursuant to Law No. 13 of 1962 regarding Regional Development Banks, the bank's legal status was transformed from a limited liability company (PT) to a regional enterprise (Perusahaan Daerah/PD) under Municipal District Regulation No. 2 of 1976. The bank evolved significantly over subsequent decades: obtaining foreign exchange bank status in 1990, reverting to PT status in 1999, establishing a Sharia Banking Unit in 2007, and becoming a publicly listed company on July 12, 2012.

Question 3

Where is Bank Jatim headquartered?

Accepted Answer

Bank Jatim is headquartered in Surabaya, the capital city of East Java Province, Indonesia. The main office is located at Jalan Basuki Rachmat No. 98-104, Surabaya 60271, East Java.

Question 4

Where does Bank Jatim operate?

Accepted Answer

Bank Jatim operates primarily throughout East Java Province, Indonesia, with its network concentrated across the region's cities and regencies. The bank maintains a strong presence in major East Java cities including Surabaya, Malang, Kediri, Jember, Probolinggo, and Banyuwangi.

Beyond East Java, Bank Jatim has expanded its reach to strategic locations outside the province, including branch offices in Jakarta and Batam. As of 2012, the bank operated 41 conventional branches, 7 sharia branches, 89 sub-branches, and over 200 cash and service offices, with the vast majority concentrated within East Java to serve the regional economy and local government entities.

Question 5

What services does Bank Jatim offer?

Accepted Answer

Bank Jatim provides comprehensive banking services including savings accounts, time deposits, current accounts, and various credit products. The bank offers specialized savings products such as Simpeda, Siklus, TabunganKu, and Tabungan Haji marketed specifically to East Java customers.

On the lending side, Bank Jatim is particularly known for its multipurpose loans (Kredit Multiguna) designed for civil servants with payroll deduction systems, property loans, business loans, SME financing, and microcredit programs. The bank also operates a Sharia Banking Unit providing Islamic banking services based on Mudharabah and Ijarah principles.

Digital services are delivered through the JConnect platform, which includes JConnect Mobile (mobile banking app available on Android and iOS), JConnect Internet Banking, JConnect SiPandai (financial inclusion program), JConnect E-Loan (online loan applications), and JConnect E-KMG (online civil servant loan applications). These platforms support QRIS payments, virtual account payments, fund transfers, bill payments, e-wallet top-ups, and cardless cash withdrawals.

Question 6

What makes Bank Jatim unique?

Accepted Answer

Bank Jatim's distinctive position stems from its exclusive relationship with the East Java Provincial Government, which provides the bank with a significant competitive advantage in deposit gathering and lending to civil servants. The bank serves as the official payment bank for the provincial government, enabling it to capture government cash accounts and maintain an exceptionally high Current and Savings Account (CASA) ratio of over 70%, reaching 80% in recent years.

The bank holds market leadership in providing multipurpose payroll loans to civil servants in East Java, with an exclusive agreement to serve approximately 471,814 government employees. These payroll loans yield favorable interest rates of 16-18% annually with remarkably low non-performing loan (NPL) rates of approximately 0.19%, as payments are directly deducted from monthly salaries. This business model has proven highly profitable and low-risk for the institution.

Question 7

What type of financial institution is Bank Jatim?

Accepted Answer

Bank Jatim is classified as a Bank Pembangunan Daerah (BPD), which is a specialized category of regional development bank in Indonesia established under Law No. 13 of 1962. BPDs are regional government-owned banks specifically mandated to support regional economic development and provide financing for development projects within their designated provinces.

As a publicly listed BPD since 2012, Bank Jatim operates as a universal commercial bank with foreign exchange privileges, offering both conventional and Islamic banking services. The bank's ownership structure consists of the East Java Provincial Government (51.46%), municipal governments throughout East Java (28.54%), and public shareholders (20%). This government ownership aligns with the bank's mission to contribute to East Java's economic growth while operating as a profit-generating commercial entity that serves retail, SME, and corporate customers.

Bank Jatim

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About Bank Jatim in Indonesia