The Financial Services Authority (OJK) will direct the People's Credit Bank (BPR) which is in one ownership or group for the merger.
The Chief Executive of Banking Supervision of the Financial Services Authority (OJK) Dian Ediana Rae targets that in the next five years the number of BPRs reaching around 1,600 will be reduced to only 1,000.
"We make the BPR-BPRs that are merged into branches, so there are headquarters and there are branches. This effort is a quick win for BPR consolidation, easy and the incentives are clear," he said, quoting Antara, Monday, February 6.
He said that the association of BPR and BPR Syariah (BPRRS) had also made efforts to merge to meet capital needs.
"Regarding the specific name, there have been several BPR groups that have started consolidating. But because it is still in process, we will announce it in due course," he said.
In the future, BPR and BPRS can be listed on the stock exchange or participate in the payment system provided by Bank Indonesia such as QR Indonesian Standard (QRIS) only BPR meets certain requirements, one of which is the requirement for total capital and assets.
"One of the conditions that allows them to participate in these two activities when they meet certain capital requirements or assets, of course government and health levels also determine," he said.
He also said that the continuation of banking consolidation would be carried out in accordance with economic demands.
Previously, the OJK had consolidated banks by requiring banks to meet a minimum core capital of IDR 3 trillion until the end of 2022 which was issued taking into account the need for credit expansion which is expected to grow up to 12 percent on an annual basis in 2024.
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