Regional Development Banks (Bank Pembangunan Daerah, or Bank BPD in Indonesian) are a type of bank in Indonesia that is established by the local provincial government. 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. It was first established on 25 March 1960 and regulated under Law Number 13 of 1962 and Law Number 16 of 1999 Decree from the Ministry of Home Affairs. According to the law, the shares of Regional Development Banks are divided into two; priority shares and regular shares. Priority shares ownership must be on the hand of provincial governments, while regular shares can be owned by second-level administrative governme