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Jakarta June 9, 2026 — KB Bank Indonesia has embarked on a sweeping overhaul, cutting hundreds of jobs, closing branches, and facing high-level resignations as profits tumble and digital transformation accelerates.
Workforce and Branch Cuts
The lender reduced its workforce by 662 employees, leaving 2,265 staff as of March 31, 2026, compared with 2,927 a year earlier.
The number of sub-branches (KCP) fell by 21 units to 120, while main branches edged up to 29.
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At the same time, KB Bank expanded its ATM network fivefold, from 31 units in early 2025 to 154 units in early 2026, underscoring a pivot toward self-service and digital channels.
Leadership Shake Up
Two directors resigned on June 3, 2026: Robby Mondong, Director of Retail, and Dodi Widjajanto, Director of Compliance & Risk.
Their departures will be formalized at the upcoming shareholders’ meeting (RUPS).
CEO Kunardy Darma Lie stressed that the resignations would not derail the bank’s transformation agenda.
Financial Strain
The restructuring comes against a backdrop of collapsing earnings.
Net profit plunged to Rp10.7 billion in Q1 2026, down sharply from Rp352 billion a year earlier.
Despite layoffs, employee costs rose to Rp196.23 billion, up from Rp166.03 billion, while administrative expenses fell to Rp174.24 billion from Rp220.67 billion.
CEO Kunardy framed the changes as part of a “continuous transformation” to build a stronger, adaptive, and sustainable organization.
He emphasized the need to respond to shifting customer behavior and digital adoption trends, while reaffirming Indonesia’s importance as a strategic market for KB Bank, a subsidiary of South Korea’s Kookmin Bank.
The moves highlight broader pressures in Indonesia’s banking sector, where digital banking adoption is reshaping cost structures and customer engagement.
KB Bank’s sharp profit decline and leadership turnover raise questions about its ability to balance efficiency, governance, and service quality in a rapidly evolving market.
This restructuring signals a decisive bet on digital channels, but whether KB Bank can stabilize earnings while maintaining customer trust remains uncertain.
