OJK: 11 Regional Development Banks Have Not Fulfilled Minimum Capital Of IDR 3 Trillion

DOK ANTARA

JAKARTA - Chief Executive of Banking Supervision of the Financial Services Authority (OJK) Dian Ediana Rae said that there were 11 regional development banks (BPD) that had not met the Minimum Core Capital of IDR 3 trillion.

"OJK continues to encourage the fulfillment of Minimum Core Capital for 11 BPD with a deadline of 31 December 2024," said Dian as quoted by ANTARA, Saturday, January 13.

Dian revealed that until now there are two BPPDs that have plans to fulfill the Minimum Core Capital through deposits independently.

Meanwhile, nine other BPDs plan to form Joint Business Groups (KUB) with companies and other holding banks.

So far, said Dian, the process of establishing the KUB by the nine BPPDs is still going according to plan.

In general, by the end of 2023 most of the BPDs have reached the signing stage of the Memorandum of Understanding (MoU) for the formation of the KUB, and one BPD who has applied for permission to the OJK to become a member of the KUB.

"Currently, there are four banks that have expressed their willingness to become the parent of the KUB. In addition, Dian continued, communication between the OJK and the Ministry of Home Affairs (Kemendagri) continues to be carried out intensively to encourage BPD to accelerate the process of forming KUB," he said.

OJK requires the parent bank to be a qualified bank in terms of capital and performance.

This, according to Dian, aims to make the parent bank committed and able to realize support for KUB members in terms of strengthening capital and liquidity.

"In addition, it also increases the capacity and capability of KUB member banks which includes increased risk management, governance, human resources, IT and BPD business development, especially in terms of productive lending to support the regional economy," he said.