LPS Values The Rise Of BPR Bankruptcy, Not Threatening The Indonesian Economy

LPS (Photo: dock. Antara)

JAKARTA - Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadive said that several People's Economic Banks (BPR) experience bankruptcy of around 6 to 7 annually.

"On average, for 18 years, what we saw was that there were 6 to 7 BPRs, not banks, but BPRs. At the beginning of (2024) there were two that were handed over to LPS and we handled them quickly and smoothly," said Purbaya at the KSSK press conference in the First Quarter of 2024 on Tuesday, January 30, 2024.

Purbaya said that his party had handled it quickly and gently so that it did not cause unrest in the community and in this process public funds had been replaced quickly.

"So it can change our image, which is said to be 'if the LPS comes, the angel of death (because) the bank falls' now that the LPS comes, customers are happy," he said.

Purbaya explained that the bankruptcy of several BPRs every year was not due to the weakening of Indonesia's economic conditions, but because of fraud practices that often occur in management. Meanwhile, the condition of commercial banks is still recorded in a solid condition.

"It's not because of the bad economy or the economic impact on the BPR, but because of the Fraud at the BPR if the BPR is sick like that, we see it can't be repaired anymore. We close it quickly. But of course it depends on the OJK (Financial Services Authority) policy", he added.

Purbaya said that in early 2024 there were already 2 bankrupt BPRs, namely BPR Wijaya Kusuma on January 4, 2024 and BPRS Mojo Artho City on January 26, 2024 and there were still some BPRs going bankrupt. However, he did not mention how many.

"But the impact on the economy will not be significant and the economic turmoil will not be too big because we are also closing the funds needed by the community quickly," he explained.

Chairman of the OJK Board of Commissioners, Mahendra Siregar, conveyed that OJK is the supervisor and LPS is the guarantee of deposits against problematic BPRs.

In addition, according to Mahendra, his party will consolidate to support the healthy development and growth of BPR throughout Indonesia.

"This is done, among other things, by merging from several BPRs owned by the same owner," he said.

Mahendra added that he would push for a single present policy policy policy. So that no one has a few BPRs.

"However, it is necessary to emphasize that this consolidation process is not only in order to reduce the number but instead strengthen and provide opportunities for growth development from the BPR itself. So that the aspects of society, MSMEs, and financial inclusion related to BPR are not only maintained but are expected to increase in the future," he said.