JAKARTA - The Financial Services Authority (OJK) has issued the Financial Services Authority Regulation Number 7 of 2026 concerning the Obligation to Provide Minimum Capital and Minimum Core Capital Fulfillment of People's Economic Banks (POJK Number 7 of 2026).
The Head of the OJK Banking Supervisory Executive, Dian Ediana Rae, explained that the regulation was issued to strengthen the capital structure of the BPR industry to be more competitive in the face of increasingly fierce competition.
"Through strong capital, it is hoped that BPR can increase its competitiveness, carry out its intermediation function well, and can absorb the risks arising from its operational activities," he said in a written statement, quoted Sunday, July 5.
In the latest regulation, each BPR is required to have a minimum core capital of IDR 6 billion and if the core capital falls below the provisions, BPR is required to meet the capital shortfall no later than six months from the submission of the monthly periodic report to the OJK.
POJK Number 7 of 2026 is an improvement on the previous POJK which regulates capital, namely POJK Number 5/POJK.03/2015.
This new regulation is also adjusted to various latest provisions, including POJK Number 7 of 2024 concerning BPR and Syariah BPR, POJK Number 1 of 2024 concerning the Quality of BPR Assets, and OJK Circular Letter Number 21 of 2024 regarding Banking Accounting Guidelines for BPR.
Through this regulation, OJK also regulates the mechanism for meeting the minimum core capital through the addition of paid-in capital and capital contributions in the form of fixed assets in the form of land and buildings that meet certain requirements.
In addition, this regulation provides relaxation of the time limit for fulfilling the completeness of administration in fulfilling the requirements for deposited capital, and adjustments to the capital component, including adjustments to the surplus balance of the revaluation of fixed assets into the core capital component.
To strengthen industry compliance, POJK Number 7 of 2026 also improves the provisions regarding administrative sanctions for BPRs that do not meet the minimum core capital obligations in accordance with applicable regulations and this regulation will take effect on June 30, 2026.
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