14 Banks Will Be Revoked Their Business Permits Gradually

Financial Services Authority (photo: Antara)

JAKARTA - The Financial Services Authority (OJK) has gradually revoked the business license of a number of banks in Indonesia throughout 2014 due to collapse.

"In 2014, 14 banks in Indonesia collapsed and their business licenses were revoked. The 14 banks were People's Credit Banks or BPRs," said OJK Banking Supervision Chief Executive Dian Ediana Rae quoting Antara.

The number of bankrupt banks this year has increased more than three times compared to last year. In 2023 there are only four bankrupt banks in Indonesia.

Meanwhile, on average each year there are seven to eight banks bankrupt in Indonesia. If withdrawn since 2005, a total of 136 banks have gone bankrupt to date.

Almost all banks that go bankrupt are indeed BPRs. The only commercial bank or non-BPR type bank that went bankrupt and revoked its business license was PT Bank IFI.

Meanwhile, the Board of Commissioners of the Monthly Financial Services Authority (OJK) noted several sanctions for enforcing provisions in the field of the Carbon Capital Market and Exchange (PMDK) during the 2024 period.

In July 2024 the OJK has imposed administrative sanctions in the form of fines for cases to 2 Investment Managers and 1 Issuer amounting to Rp475,000,000.

Furthermore, during 2024, OJK has imposed Administrative Sanctions on case examinations at the Capital Market to 83 parties consisting of Administrative Sanctions in the form of fines of IDR 57,175,000.

In addition, there are 14 written orders, 1 revocation of investment manager business licenses, 1 revocation of individual permits, and 5 written warnings.

As well as imposing administrative sanctions in the form of fines for delays with a value of Rp49,809,990,000. to 561 financial service actors in the capital market.

This sanction has 66 written warnings for delays in submitting reports, and imposing 2 administrative sanctions in the form of written warnings in addition to delays.