The Financial Services Authority (OJK) is reviewing the BPR and BPRS Industrial Development Roadmap (Roadmap) 2021-2025 to strengthen the governance of the People's Economy Bank (BPR).
OJK Banking Supervision Chief Executive Dian Ediana Rae said the review was one of the OJK's efforts in responding to the rampant BPR which went bankrupt in 2023.
"Currently OJK is revising the BPR Roadmap and is in the stage of carrying out the survey. In the near future, it is hoped that the OJK will be able to launch this Roadmap," Dian said quoting Antara.
As for 2023, there are four BPRs that were closed due to fraud cases, and in early 2024 there was one BPR whose license was revoked. Dian explained that fraud was the main factor in closing many BPRs in Indonesia.
In addition to conducting roadmap reviews, the OJK also made various other efforts. Among them internally, the OJK continues to strengthen supervision through the implementation of a typological workshop and the handling of banking provision storage.
Then as a measure to prevent bank bankruptcy, OJK takes an approach by strengthening BPR/S capital and consolidation.
"Furthermore, the OJK will also strengthen the provisions by issuing consolidated POJK which regulates Single Present Policy," said Dian.
Furthermore, despite the revocation of the BPR's business license, Dian explained that the consolidation of BPR affected by COVID-19 caused the number of BPRs from year to year to show a decline.
In 2020 there were 1,669 BPR/S recorded, in 2021 there were 1,632 BPR/S, in 2022 there were 1,608 BPR/S and 1,581 BPR/S as of December 2023.
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However, several indicators of the performance of the BPR/S financial industry still show positive growth such as assets, financing credit and third party funds (DPK).
Dian conveyed that the OJK continues to improve its supervisory function to ensure that the BPR/S operations have implemented the precautionary principle in accordance with the provisions supported by information technology infrastructure.
In addition, strengthening the governance of BPR/S is also encouraged through consolidation or merger of BPR/S.
"The BPR/S merger process is still ongoing, especially for BPR/S with the same ownership in order to synergize, efficiency and increase financing capacity," said Dian.
Throughout 2023, OJK has given consolidation approval of 38 BPR/S through mergers spread across Indonesia.
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