OJK Revokes BPRS Mojo Artho's Business License Due To Bad Management

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JAKARTA - The Financial Services Authority (OJK) has revoked the business license of PT Bank Perekonomian Rakyat Syariah Mojo Artho Mojokerto City (Perseroda) or BPRS Mojo Artho.

The revocation of the Mojo Artho BPRS business license is part of the surveillance action carried out by the OJK to continue to maintain and strengthen the banking industry and protect consumers.

The revocation of the Mojo Artho BPRS business license was carried out through the Decree of the Member of the Board of Commissioners (KADK) Number KEP-13/D.03/2024 dated January 26, 2024 regarding the Revocation of the Business License of PT Bank Pembiayaan Rakyat Syariah Mojo Artho Mojokerto City (Perseroda).

Previously, BPRS Mojo Artho since November 19, 2020 has been designated as BPRS in Intensive Supervision (BDPI) in accordance with Financial Services Authority Regulation No.19/POJK.03/2017 and Financial Services Authority Circular No.56/SEOJK.03/2017 respectively regarding the Determination of Status and Follow-up to Supervision of Sharia People's Credit Banks and Sharia People's Financing Banks as amended by Financial Services Authority Regulation No.32/POJK.03/2019 and Financial Services Authority Circular No.5/SEOJK.03/2020.

Furthermore, based on Article 16C paragraph (1) and paragraph (4) of the Financial System Stability Cluster and Article 325 of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK), the status of supervision of BPRS Mojo Artho was confirmed to be a Bank in Restructuring (BDP).

Meanwhile, this is due to the condition of BPRS Mojo Artho which continues to worsen due to the management of BPRS which is not based on the principle of prudence.

The status determination aims for the Management/Shareholders to take steps to improve the condition of BPRS Mojo Artho. However, the restructuring efforts carried out by the Management/Shareholders were unable to remove BPRS Mojo Artho from the BDP supervision status.

Considering the financial condition of BPRS Mojo Artho which endangers the continuity of his business, then based on Article 16E paragraph (1) of the Financial System Stability Cluster of the P2SK Law, on January 12, 2024, BPRS Mojo Artho was designated as Bank Dalam Resolution (BDR).

In addition, in accordance with Article 6 paragraph (2) and Article 7 number 6 of the Cluster of Deposit Insurance Corporations of the P2SK Law, the Deposit Insurance Corporation (LPS) exercises its authority to take over the management of BPRS.

Furthermore, based on the Decree of the LPS Board of Commissioners Number 26/ADK3/2024 dated January 22, 2024, LPS decided not to make rescues and asked OJK to revoke the business license of BPRS Mojo Artho.

Following up on the LPS recommendation, OJK based on POJK Number 28 of 2023 concerning the Determination of Status and Follow-up to the Supervision of the People's Economy Bank and Sharia People's Economy Bank, has revoked the business license of BPRS Mojo Artho.

With the revocation of the BPRS business license, LPS will carry out the guarantee function and carry out the liquidation process in accordance with the Law of the Republic of Indonesia Number 24 of 2004 concerning the Deposit Insurance Corporation as has been amended several times last by the P2SK Law.

OJK appealed to customers of PT BPRS Mojo Artho Mojokerto City (Perseroda) to remain calm because public funds in banks including BPRS are guaranteed by LPS in accordance with applicable regulations.