OJK: There Are 12 LKM Whose Permits Have Been Revoked In 2024

Photo: Doc. Antara

JAKARTA - Chief Executive of the Supervision of Financing Institutions, Ventural Capital Companies, Micro Financial Institutions and Other Financial Services Institutions (PVML) of the Financial Services Authority (OJK) Agusman reported that 12 Micro Financial Institutions (LKM) had been revoked their business licenses throughout 2024.

"Of the 12 LKMs, seven of them requested the revocation of business licenses based on the decision of the General Meeting of Shareholders (GMS) or member meetings. So, the GMS decided to return their business licenses, so we revoked their business licenses," he said at the Press Conference on the Financial Services Sector Assessment and OJK Policy as a result of the Monthly Board of Commissioners Meeting (RDKB) December 2024, quoted by Antara, Wednesday, January 8.

In order to strengthen LKM as a derivative of the Law (UU) on the Development and Strengthening of the Financial Sector (P2SK), currently the OJK Regulation (POJK) Number 41 of 2024 concerning LKM regulates, among others, the grouping of LKM business scales into small, medium or large business scales with certain criteria.

Then also assess the quality of loans and the elimination of loans, as well as LKM health level arrangements with certain aspects.

"So, many new things are introduced to this provision," he said.

In addition, the determination of POJK Number 43 of 2024 concerning the Quality Development of Human Resources (HR) PMVL and POJK Number 48 of 2024 concerning Good Governance for PVML is also expected to improve the quality of human resources and governance at LKM.

"This will make the development LKM better in the future," said Agusman.