LPS Calls Every Year 7 BPR Bangkrut, This Is The Cause

JAKARTA - The Deposit Insurance Corporation (LPS) noted that on average there are 6 to 7 People's Economic Banks (BPR) that go bankrupt every year.

The chairman of the LPS Board of Commissioners, Purbaya Yudhi Sadivewa, said that this number was an LPS calculation for the last 18 years. Even though each year there is a BPR that is declared a failed bank, he emphasized that the cause is not related to economic conditions.

"Not because it is related to economic conditions but related to lack-management," said Purbaya at a press conference at the Interest Rate of Deposit Insurance in Jakarta, Tuesday, January 30.

For 2024 itself, said Purbaya, his party had received reports related to a failed bank, but he emphasized that LPS did not know exactly how many banks were. However, he ensured that his party continued to anticipate and coordinate with the Financial Services Authority (OJK) so that the handling of BPR failed to run smoothly and caused no noise in the public.

"The important thing is that our message is not chaotic and we panic to take the money in a crowd. The financial and economic condition is good," added Purbaya.

Purbaya said that bank banks from year to year are common, including the existence of banks that will go out of business this year. He also ensured that his party coordinated strictly with the OJK on this issue.

Generally, the problem of BPR failing was due to the funds raised being taken away or stolen by the bank owner, resulting in bankruptcy.

He also admitted that LPS could not do much to infer BPR losses due to management errors but that his party was trying to take serious steps such as developing an Information and Technology (IT) system to be used by BPR.

"What is the attitude of LPS? We can't help too much, we will try to develop an IT system that can be used by BPR until they compete and can improve management capabilities better," concluded Purbaya.