The idea to establish a Regional Government-owned Bank in Aceh was sparked by the initiative of the Transitional Regional Government Council of Atjeh Province (now called the Provincial Government of Nanggroe Aceh Darussalam). After obtaining the approval of the Regional Representative Council for the transitional region of Aceh Province in Kutaraja (now Banda Aceh) by Decree No. 7/DPRD/5 dated 7 September 1957,several people representing the Regional Government went to Mula Pangihutan Tamboenan, a Notary representative in Kutaraja, to establish a Bank in the form of a Limited Liability Company named “PT Bank Kesejahteraan Atjeh, NV” with an authorized capital of Rp 25,000,000.
After several amendments to the Deed, on February 2, 1960 permission was obtained from the Minister of Finance with Decree No. 12096/BUM/II and Ratification of Legal Form from the Minister of Justice with Decree No. JA5/22/9 dated March 18, 1960, At that time PT Bank Kesejahteraan Aceh NV was led by Teuku Djafar as Director and Commissioner consisting of Teuku Soelaiman Polem, Abdullah Bin Mohammad Hoesin, and Moehammad Sanusi. With the enactment of Law no. 13 of 1962 concerning the Basic Provisions of Regional Development Banks, all Banks belonging to Regional Governments that have been previously established, must conform to the Act.
To fulfill this provision, in 1963 the Regional Government of the Special Region of Aceh made Regional Regulation no. 12 of 1963 as the legal basis for the establishment of the Aceh Special Region Development Bank. In the regional regulation, it is emphasized that the purpose of establishing the Aceh Special Region Development Bank is to provide financing for the implementation of regional development efforts in the context of universally planned national development.
Ten years later, or rather on April 7, 1973, the Governor of the Special Region of Aceh issued Decree No. 54/1973 concerning the stipulation of the transfer of PT Bank Kesejahteraan Aceh, NV to the Aceh Special Region Development Bank. The transfer of status, in terms of legal form, rights and obligations and others, was officially carried out on August 6, 1973, which is considered the birthday of the Aceh Special Region Development Bank.