This is a list of 12 banks that have gone bankrupt and had their licenses revoked since early 2024

JAKARTA – There have been 12 banks whose licenses have been revoked by the Financial Services Authority ( FSA ) in the period January-May 2024. The authorities revoked the permits of the average people’s economic banks (BPR) due to indications of committing fraudulent practices. In 2024, it will only be six months since the number of 12 BPRs has tripled compared to last year’s figure. The number of BPRs, which are often called bankrupt banks, has also closed above the average for the last 18 years.

Most recently, a bankrupt bank emerged called PT BPR Bank Jepara Artha (Perseroda) whose license was then revoked by the OJK referring to the Decision of the Members of the OJK Board of Commissioners Number KEP-42/D.03/2024 dated 21 May 2024 concerning the Revocation of PT BPR Bank Jepara Artha’s Business License ( Perseroda).

“The revocation of the business license of PT BPR Bank Jepara Artha (Perseroda) is part of the supervisory action carried out by the OJK to continue to maintain and strengthen the banking industry and protect consumers,” wrote the OJK in its announcement quoted on Sunday (26/5/2024).

Bankrupt BPR customers’ funds are certainly guaranteed by the Deposit Insurance Corporation (LPS). However, Chairman of the LPS Board of Commissioners, Purbaya Yudhi Sadewa, said that the realization of the disbursement of the budget to save failing banks depends on the circumstances, it could be that fewer or more will fall, considering the BPR consolidation program from the OJK.

“There is a program like consolidation, so we got a figure from the OJK of around 12 at that time, yes. But maybe it will shift, maybe more or less. We’ll wait for developments,” he said recently.

As of the third week of May this year, the number of banks that went bankrupt reached 12 companies. Where, all banks whose business licenses have been revoked by the OJK are BPRs.

If detailed, in the previous month, namely April 2024 alone, four banks had gone bankrupt in Indonesia, starting from BPR Dananta in Kudus, BPRS Saka Dana Mulia in Kudus, BPR Bali Artha Anugrah and BPR Sembilan Mutiara in West Sumatra.

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In fact, in the first three months, OJK also revoked BPR Aceh Utara, BPR EDCCASH, Perumda BPR Bank Purworejo, PT BPR Bank Pasar Bhakti, PT BPR Usaha Madani Karya Mulia, BPRS Mojo Artho Kota Mojokerto (Perseroda) and BPR Wijaya Kusuma Cooperative.

The following is a list of 12 BPRs that will close in the first half of 2024: