OJK Reveals Reasons For Closing A Number Of BPRs: To Strengthen The National Banking System!

Illustration. (Photo: Doc. Antara)

JAKARTA - Chief Executive of Banking Supervision of the Financial Services Authority (OJK) Dian Ediana Rae revealed that the reason for the OJK to close a number of People's Credit Banks (BPR) was to strengthen the national banking system.

He said that so far there are around 20 BPRs that have been and will be closed by the OJK.

"Therefore, don't be too surprised that the chief executive of banking supervisors may have recently been forced, for example, to close several BPRs. Maybe there are about 20 that we closed. That's all in the context of strengthening in our banking sector," said Dian at the 2024 Midyear Challenges Indonesia Business event in Jakarta, quoted from Antara, Monday, July 29.

Dian said that overall the condition of BPR in Indonesia was actually quite good, but there were several BPRs who had to be closed because they did not obey the regulations until they were caught in a fraud case.

With the healthyness of the banking sector, he continued, the sector's performance will be able to support Indonesia's economic growth in the future.

"Because this BPR overall performance is good, but there are a handful of BPRs, which are very important for MSMEs, who are still experiencing fundamental problems, even related to fraud," he explained.

In addition, Dian explained that in the future the growth of the banking sector must be strengthened by increasing system integrity.

"I think there is the most certain way to ensure that banking growth and economic impact will continue to run quickly if indeed our financial system has integrity and credibility," said Dian.

For information, in the range during the January-May 2024 period, the OJK has revoked the business license of 14 BPRs.

Finally, OJK has just revoked the business license of PT BPR Sumber Artha Waru Agung in Sidoarjo Regency, East Java because it cannot overcome capital problems.

"The revocation of the business license of PT BPR Sumber Artha Waru Agung is part of the supervisory action carried out by the OJK to continue to maintain and strengthen the banking industry and protect consumers," Acting Head of OJK East Java Province Bambang Mukti Riyadi in a statement received in Jakarta, Wednesday (24/7).

Bambang said that on December 21, 2023, OJK had designated BPR Sumber Artha Waru Agung as a bank with the status of bank supervision in restructuring (BDP) based on the consideration of the Minimum Capital Fulfillment Obligation (KPMM) ratio under the provisions and level of health (TKS). ) has the title unhealthy'.

Then, on July 9, 2024, OJK appointed BPR Artha Waru Agung as a bank with a bank supervisory status in resolution (BDR) based on the consideration that OJK has given sufficient time to BPR administrators and shareholders to make restructuring efforts including overcoming capital problems. However, the management and shareholders of BPR cannot restore BPR.