Bank Blora BPR Congested Credit Case Rises Investigation, Regency Government: We Support With New Management

The District Attorney (Kejari) of Blora Regency in Central Java (Central Java) has officially raised the status of the bad credit case of Perumda BPR Bank Blora Artha to the investigation stage.

Head of the Intelligence Section of the Blora Kejari, Jatmiko, confirmed the development. Meanwhile, the investigation stage is currently being focused on examining a number of key witnesses from the internal state-owned bank.

"Currently, the witness examination stage is still being examined. Just wait for the progress," he said in Blora, Thursday, July 31, as reported by Antara.

Previously, he said, this case was handled by the Central Java High Prosecutor's Office, but was then transferred back to the Blora Kejari for further investigation.

"Indeed, at first the Attorney General's Office immediately intervened. But now it has been transferred back to us," he said.

Meanwhile, Blora Regent Arief Rohman revealed that his party had coordinated with the Financial Services Authority (OJK) to formulate recovery measures.

"With the OJK, we already have a written plan. How will the bad credit settlement be, so that we can arrange it and we will finish it," he said.

Deputy Regent (Wabup) Blora Sri Setyorini emphasized the importance of comprehensive restructuring within BPR Blora Artha to restore public trust that had collapsed.

"Blora Artha must be repaired. Later we will support it with a new management that will be inaugurated soon," he said.

According to him, additional audits are not needed because OJK evaluations have shown that BPR Blora Artha's financial condition is in a minus, aka unhealthy status, so it needs to be perfected because it is given a period of time.

For that, he said, the importance of active collection of rogue debtors. So that all those who do not pay will be called.

Allegations of irregularities in lending also dragged indications of gratification, which is said to be one of the triggers for the mounting number of bad loans. In the follow-up clarification process which took place from October 31 to November 1, 2024, at least six internal Bank Blora Artha officials had been examined.

Those examined included the President Director, Supervisory Board, as well as a number of strategic heads such as the Head of Analysis and Credit, Head of Marketing, and Head of the Credit Support Subdivision.

This troubled loan is suspected to involve not only debtors from the Blora area, but also expands outside the region with a total value of tens of billions of rupiah. So that it further strengthens the suspicion that the management of the regional bank does not run according to the principles of prudence and good governance.