Indonesian regional development bank

Its purpose is to boost regional development and provide initial capital to the province that private banks would not risk giving, as well as giving basic financial services for the general provincial population.

Priority shares ownership must be on the hand of provincial governments, while regular shares can be owned by second-level administrative governments under the respective provinces (regencies & cities) and individuals.

The director of these banks are appointed directly by the governor of the respective provinces and hold the office for 4 years.

If there is more than one director, the law also states that they are not allowed to be closely related and should not occupy other governmental positions unless recommended.

These BPRs, according to the Financial Services Authority, exist to serve local people on providing basic financial services & credits, and are not allowed to demand deposits, do foreign exchange activities, and have insurance services, hence differing from either BPDs or conventional banks.