OJK: Cuting BPR A Strategy To Strengthen And Be Healthy

Rupiah (Photo: Antara)

JAKARTA - The Financial Services Authority (OJK) considers that the step of cutting the number of People's Credit Banks (BPR) is one of the strategies to strengthen and make the BPR/S industry healthy.

However, Chairman of the OJK Board of Commissioners Mahendra Siregar has not yet set the number of BPR/S targets to be cut.

"It is more about efforts to make restructuring and of course strengthen the conditions of the existing BPR and BPRS in terms of health, governance, and of course its activities, as well as fulfillment of its core capital," Mahendra said quoting Antara.

For this reason, as a step to restore the BPR/S industry, Mahendra said that it is not uncommon for his party to be forced to revoke BPR/S permits that do not meet the requirements and regulations from the OJK.

Throughout 2024, OJK has revoked business licenses for 7 BPRs, namely BPR Madani Karya Mulia in Surakarta, BPR Wijaya Kusuma in Madiun, BPRS Mojo Artho in Mojokerto, Perumda BPR Purworejo, BPR Bank Pasar Bhakti in Sidoarjo, BPR EDCASH in Tangerang, and North Aceh BPR in Aceh.

"Looking at the recent times in terms of health levels, governance, and also the level of risk of fraud, the consequence is that the number of BPRs that do not meet the requirements must automatically be reduced," said Mahendra.

Previously, OJK Deputy Chairman Mirza Adityaswara had discussed that the BPR might be cut from around 1,500 to 1,000 BPR.

As for the latest, OJK has revoked the business license of PT Bank Percreditan Rakyat (BPR) North Aceh because the banking health level was declared unhealthy.

The revocation of the business license was based on the decision of members of the OJK Board of Commissioners and was carried out to protect consumers.

"OJK in accordance with the decision of the board of commissioners, revoked the business license of PT BPR North Aceh which is located in Lhokseumawe City, Aceh Province. The revocation of the business license protects consumers," said Head of OJK Aceh Province Yusri, Monday (4/3).

Yusri said that the revocation of the business license was part of the supervisory action taken by the OJK to continue to maintain and strengthen the banking industry.

He explained that the OJK determined PT BPR Aceh Utara to have the status of bank supervision in restructuring on March 30, 2023. The status determination was with the consideration of the health level which was considered an unhealthy predicate.

Furthermore, on January 12, 2024, OJK determined that PT BPR North Aceh had a bank oversight status in resolution. OJK has also given time to the directors and controlling shareholders to make restructuring efforts.