PONTIANAK, The Kabar News—West Kalimantan Police have opened a formal investigation into suspected irregularities in Bank Kalbar’s distribution of the subsidized microcredit program (KUR). The investigation has intensified scrutiny of the regional development bank despite its string of national awards in 2026.

Sr. Comr. Burhanuddin, director of the West Kalimantan Police’s Special Criminal Investigation Directorate, confirmed on Tuesday, Nov. 10, that investigators had moved the case from a preliminary inquiry to the investigation stage.

“We have moved the Bank Kalbar case to the investigation stage and are still questioning several witnesses and collecting evidence,” Burhanuddin said. “We are handling the case professionally in accordance with the applicable regulations.”

Police are seeking sufficient evidence to identify potential suspects. Investigators are also calculating any losses arising from the alleged misconduct.

“We have moved it to the investigation stage to collect two pieces of evidence and determine the suspects. The amount of losses is still being calculated,” Burhanuddin said, as quoted by Media Kalbar.

The announcement means police suspect that a criminal offense occurred and have begun gathering evidence to determine who may bear responsibility.

However, investigators have not publicly named a suspect or disclosed an independently verified estimate of losses. The investigation also does not establish the guilt of any Bank Kalbar employee or executive.

Local reports have linked the investigation to Bank Kalbar’s distribution of the KUR, a government-supported lending program for micro and small enterprises.

The reports allege that some applications may have involved fictitious borrowers. They also cite manipulated documents and the unauthorized use of residents’ identity information. Police have not released a detailed case file confirming those alleged methods. They have also not disclosed the number of affected borrowers or the amount of disputed lending.

Claims that the case involves tens of billions of rupiah therefore remain unverified. Investigators must establish the flow of funds and determine whether employees, borrowers or outside intermediaries violated banking rules.

The inquiry carries broader significance because KUR forms a major part of Indonesia’s financial-inclusion policy. The government raised the national KUR allocation for 2026 from Rp295 trillion to Rp325 trillion.

By Oct. 31, total government credit-program disbursement had reached Rp300.8 trillion, while the nonperforming-loan ratio stood at 2.14 percent as of September, according to the Coordinating Economic Ministry.

Awards do not replace regulatory scrutiny.

Bank Kalbar has received several awards this year. The West Kalimantan provincial administration confirmed that the bank earned a five-star rating at the 2026 TOP BUMD Awards. Infobank Media Group also named it a Golden Champion for eight consecutive years of financial performance.

In October, the bank received a score of 91.85 and a “Very Good” rating at The Finance Award 2026. These awards reflect the assessments of their respective organizers, but they do not determine criminal liability or substitute for an examination of individual loan transactions.

OJK regulations require banks to maintain internal controls and implement anti-fraud systems covering prevention, detection, investigation and follow-up.

The regulator also requires bank management to ensure that lending decisions follow proper oversight and separation of duties. OJK’s governance rules place responsibility for effective anti-fraud controls on directors and commissioners.

The investigation’s credibility will depend on transparent findings, verified loss calculations and a clear explanation of whether weaknesses in Bank Kalbar’s controls enabled the alleged conduct. Until police complete that process, all allegations must remain subject to the presumption of innocence.