There Are 14 Banks Bankrupt Until July 2024, OJK Says It Will Continue

JAKARTA – Financial Services Authority (OJK) admit there will still be People’s Economic Bank (BPR) which closed this year. Meanwhile, throughout the first semester of 2024, OJK has revoked the business licenses of 14 BPRs.

Chief Executive Supervisor Banking OJK, Dian Ediana Rae said, her party has held several meetings regarding the direction of development and the direction of resolving BPR problems.

“Regarding whether some of these BPRs will close, yes I have to admit that some will still close because there are still problems,” said Dian in a virtual Press Conference on the Financial Services Sector Assessment & OJK Policy Results of the July 2024 Monthly RDK, Monday (5/8).

According to Dian, OJK is trying to improve all aspects of BPR, starting from HR, governance, capital and other necessary aspects including IT.

“Therefore, for banks, for BPRs that we can no longer save, they must be resolved, of course including being resolved by the Deposit Insurance Agency (LPS),” explained Dian.

Previously, Dian had estimated that a total of 20 BPRs would close in 2024. Thus, there are still 6 BPRs for the remainder of the year, but Dian said that this figure could still change.

Most recently, the OJK has revoked the business licenses of PT Bank Perkreditan Rakyat Lubuk Raya Mandiri on July 23, 2024 and PT Bank Perkreditan Rakyat Sumber Artha Waru Agung on July 24, 2024.

Meanwhile, BPR consolidation is a priority agenda of OJK. Currently, the number of BPR is still quite large or more than 1,500 companies.

Based on the Financial Sector Development and Strengthening Law (PPSK Law), BPRs are given additional powers to be able to offer banking services.

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