Analysing CSR Practice in Regional Development Bank (Bank Pembangunan Daerah) in Indonesia: A case study and proposed solutions

Abstract

This article discusses about the corporate social responsibility (CSR) of regional development banks (bank pembangunan daerah or BPD) in Indonesia through a case study of a BPD in East Java province. As a company majority-owned by the local provincial government or governments, a BPD is expected to support the regional development agenda and take a role in improving the local economic welfare, including through CSR programmes, besides providing typical financial and banking services. This improves the notability of BPDs’ CSR programmes, as well as forms expectations on the programme. A suitable and improved CSR programme is therefore necessary to allow BPDs to fulfill its role as a supporter of the local development agenda of the government. This article starts by a brief introduction on the topic of CSR and BPDs in Indonesia, literature review, identification of the issues, analysis, and finally concluded with proposed solutions in relations to the case study. The research in this paper is conducted in qualitative method. Data used for research in this paper were obtained through interviews, company reports, and observation during the author’s internship at the company.