Issuing New Regulations, OJK Strengthens BPR Institutions And Sharia BPRs

Antara

JAKARTA - The Financial Services Authority (OJK) issued Financial Services Authority Regulation Number 7 of 2024 (POJK 7/2024) concerning the People's Economy Bank (BPR) and the Sharia People's Economy Bank (BPR Syariah) to accelerate the strengthening of the institutional aspects of the BPR and Sharia BPR industries in accordance with the mandate of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (P2SK).

POJK 7/2024 is intended to continue to encourage BPR and Sharia BPR to grow and develop into financial institutions with integrity, adaptiveness, and competitiveness and is expected to be able to contribute to providing financial services to the community, especially micro and small business actors in their area.

"This provision is important because it will change the industrial landscape of BPR and BPR Syariah in the face of challenges and competition in the future. The issuance of this OJK Regulation and efforts to strengthen are expected to increase public trust in BPR or BPR Syariah," said OJK Banking Supervision Chief Executive Dian Ediana Rae in his statement, quoted on Sunday, May 19.

According to Dian, this POJK is an effort by the OJK to continue to increase optimal supervision considering that based on the results of supervision, OJK found several structural weaknesses including fraud so that the BPR or Sharia BPR had to be closed for the sake of restoring the banking system and protecting consumers.

POJK 7/2024 which has been in effect since it was promulgated on April 30, 2024, regulates the institutional aspects of BPR or Sharia BPR starting from the establishment, ownership, management, office network, merger, consolidation, and takeover, to the revocation of business licenses at the request of shareholders.

This POJK contains a number of strategic policies in order to accelerate the strengthening of the institutional aspects of the BPR and Sharia BPR industries, including:

Dian conveyed that the obligation to consolidate the BPR or BPR Syariah group must be completed no later than two years after this POJK applies to BPR or BPR Syariah non-regional regional government, and no later than three years after this POJK applies to BPR or BPR Syariah owned by the local government.

Dian hopes that this POJK can increase the level of playing field of BPR and BPR Syariah as well as strengthen the capital capacity of the BPR and Sharia BPR industries. OJK believes that the policy of consolidating BPR and Sharia BPR can make the industry more efficient and more contributing to the economy and society