Jakarta-owned bank, PT Bank Pembangunan Daerah DKI Jakarta (Bank DKI), is preparing to go public through an initial public offering (IPO) on the Indonesia Stock Exchange (IDX) upon securing approval from the Financial Services Authority (OJK) and the Jakarta Provincial Administration.

“We’ll announce the exact timeline later. For now, preparations are underway,” Bank DKI President Director, Agus H. Widodo, said as quoted by Katadata.co.id on Tuesday, May 20, 2025.

The plan to list Bank DKI was previously disclosed by Jakarta Governor Pramono Anung, who emphasized that the IPO is part of a broader initiative to reform the Jakarta-owned bank. However, Pramono acknowledged that some issues must be resolved before the listing can proceed − particularly the findings from a problematic audit report.

“We don’t want repeated issues or financial leaks. That’s why we’re handling the IPO preparations with caution,” he said, while adding that the resolution process is expected to take no more than six months.

Despite the challenges, Bank DKI has shown solid financial performance. In the first quarter of 2025, the bank posted a net profit of Rp215.34 billion (US$13 million), a 14.9 percent increase compared to Rp187.48 billion in the same period last year.

This growth was supported by a 9.1 percent rise in net interest income, reaching Rp708.73 billion. Interest income increased from Rp1.36 trillion to Rp1.41 trillion, while interest expenses slightly declined from Rp712 billion to Rp710 billion. However, the bank’s Net Interest Margin (NIM) edged down slightly from 4.05 percent to 4.01 percent.

Another contributing factor was a decrease in provisioning costs, which dropped from Rp65.8 billion to Rp38.3 billion, despite a modest 3.36 percent increase in total credit and sharia financing, reaching Rp52.23 trillion in the first quarter.

Bank DKI’s asset quality showed mixed results. The gross non-performing loan (NPL) ratio rose from 2.01 percent to 2.74 percent, while the net NPL climbed from 0.7 percent to 1.1 percent.

Total assets fell by 4.8 percent to Rp78.39 trillion as of March 31, 2025, down from Rp82.37 trillion at the end of December 2024. However, the bank’s equity grew to Rp11.59 trillion, up from Rp11.35 trillion.

Key financial ratios improved, with the Capital Adequacy Ratio (CAR) rising to 27.63 percent from 25.30 percent, Return on Equity (ROE) increasing to 7.96 percent from 7.23 percent, and Return on Assets (ROA) slightly up to 1.41 percent.