Jakarta. KB Bank reduced its workforce by 662 employees over the past year as part of a broader technology-driven transformation aimed at improving operational efficiency, strengthening customer service, and accelerating its business turnaround, the Financial Services Authority (OJK) said on Monday.

The lender's workforce declined from 2,927 employees to 2,265 as of March 31, 2026, while its branch network was also streamlined. The number of sub-branches fell from 141 to 120, and full-service branches decreased from 29 to 28, according to the bank's latest financial statements.

OJK Banking Supervision Chief Dian Ediana Rae said the workforce reduction forms part of KB Bank's strategy to replace labor-intensive processes with technology and modernize its operations.

“KB Bank is implementing a turnaround program by shifting from manual processes to technology,” Dian told reporters in Jakarta. “For example, the bank has introduced a new IT system that enables faster responses to loan applications, particularly in the micro, small, and medium-sized enterprise segment.”

Dian stressed that banks undertaking workforce reductions must maintain sound industrial relations and consult with OJK before implementing such measures, as required under banking regulations.

He added that lenders are also required to provide adequate compensation for employees affected by layoffs.

Despite the restructuring, Dian said Indonesia's banking sector remains resilient and that the workforce reduction at KB Bank poses no material risk to financial system stability.

Separately, KB Bank Corporate Secretary Ariz Dian Perkasa said the workforce and branch rationalization had been part of the bank's transformation strategy since 2025.

He said the measures were designed to improve operational efficiency, strengthen service capabilities, and support sustainable long-term growth while responding to changing customer preferences and the rapid adoption of digital banking.

KB Bank said customer services remain fully operational through its branch network, ATM infrastructure, and expanding digital channels. The bank added that the restructuring had been carried out in accordance with Indonesian labor regulations and good corporate governance principles.