OJK: IPO For BPR And BPRS Implemented Gradually

Chief Executive of Banking Supervision of the Financial Services Authority (OJK) Dian Ediana Rae. (Photo: Doc. Antara)

JAKARTA - Chief Executive of Banking Supervision of the Financial Services Authority (OJK) Dian Ediana Rae said the initial public offering (IPO) for public loans banks (BPR) and Islamic people's credit banks (BPRS) would be carried out in stages.

"We will really be selective, will gradually and gradually. Of course we will start allowing these BPR-BPR stages. We are actually strengthening these requirements," said Dian in Jakarta, quoted from Antara, Tuesday, May 21.

Dian added that later there will be grouping into three types of BPR/S based on level or tiering. Each tiering reflects on the level of health and capital owned by BPR/S.

"This is what we are working on in more detail before we can IPO," he added.

Dian also reminded that not all BPR/S can be listed on the stock exchange, because there are requirements that must be met by BPR/S first. BPR's reputation will also be at stake if they organize an IPO.

"It is not arbitrary (the BPR that organizes the IPO). Because we will ensure that investors will not be harmed. It will be dangerous later if the performance of the BPR is not even good, investors will no longer believe in the BPR," he said.

In accordance with the mandate of Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK), OJK issued POJK No. 7 of 2024 concerning BPR and BPRS which has been in effect since April 30, 2024.

The POJK is designed to strengthen the institutions and capital of BPR/S through consolidation by means of merger or merger, as well as orders for the implementation of merger or merger, especially for BPR and BPRS groups in the ownership of the same controlling shareholder (PSP) or known as the single price policy approach.

The arrangement in the POJK also opens up opportunities for BPR and BPRS to expand access to capital through public offering effects through the capital market.

BPR and BPRS that can be listed on the securities exchange must meet the requirements that pay attention to, among others, good capital, health levels, good governance, and effective risk management.

The requirements are contained in Article 35 POJK 7/2024. The article states that public offerings of securities through the capital market are carried out in the form of equity effects and/or debt securities in the form of bonds for BPR or sukuk for BPRS.

BPR/S who will conduct public offerings must meet the requirements including core capital of at least Rp80 billion.

Another requirement is the governance assessment with the lowest predicate in rank 2, the lowest risk profile assessment in rank 2, and the lowest health level in composite rank 2, where the total is assessed in the last two periods.