List of 14 BPR Rural Banks Shut Down by OJK due to Collapse

TEMPO.CO, Jakarta - So far in 2024, the Financial Services Authority (OJK) has revoked the business licenses of 14 banks across Indonesia, all of which are rural banks (BPR). The regulator closed the banks because they collapsed.

"In 2014, 14 banks in Indonesia collapsed and had their business licenses revoked. These banks were rural credit banks or BPRs," OJK chief executive for Banking Supervision Dian Ediana Rae in a press statement in Makassar on Monday, August 5.

The number of bank insolvencies this year has risen sharply, more than tripling compared to last year. In 2023, only four banks had gone bankrupt.

On average, seven to eight banks collapse every year in Indonesia. Since 2005, a total of 136 banks have gone bankrupt. Almost all of the banks that went bust were BPRs. The only commercial or non-BPR type bank that went bankrupt and had its business license revoked was PT Bank IFI.

The following are BPRs that had been shut down by the OJK in 2024:

1. BPR Wijaya Kusuma; Location: Madiun / Date of closure: January 4

2. BPRS Mojo Artho; Location: Kota Mojokerto / Date of closure: January 26

3. BPR Usaha Madani Karya Mulia; Location: Surakarta / Date of closure: February 5

4. BPR Bank Pasar Bhakti; Location: Sidorajo / Date of closure: February 16

5. BPR Bank Purworejo; Location: Purworejo / Date of closure: February 20

6. BPR EDC CASH; Location: Tangerang / Date of closure: February 27

7. BPR Aceh Utara; Location: Lhoksemauwe / Date of closure: March 4

8. BPR Sembilan Mutiara; Location: West Pasaman / Date of closure: April 2nd

9. BPR Bali Artha Anugrah; Location: Denpasar / Date of closure: 4 April

10. BPRS Saka Dana Mulia; Location: Kudus / Date of closure: April 19

11. BPR Dananta; Location: Kudus / Date of closure: April 30

12. BPR Bank Jepara Artha; Location: Jepara / Date of closure: May 21

13. BPR Lubuk Raya Mandiri; Location: Padang / Date of closure: July 23

14. BPR Sumber Artha Waru Agung; Location: Sidoarjo / Date of closure: July 24

OJK Sanctions in 2024

This year, the OJK also imposed sanctions for the enforcement of regulations in the capital market and stock exchange sector (PMDK). In July, OJK imposed administrative sanctions in the form of a fine of Rp475,000,000 on two investment managers and one issuer.

The OJK also imposed administrative sanctions for capital market investigation cases on 83 parties, consisting of administrative sanctions in the form of a fine of Rp57,175,000.

In addition, the OJK also issued 14 written orders, 1 revocation of an investment manager's business license, 1 revocation of an individual's license, and 5 written warnings. The regulator also imposed administrative sanctions in the form of fines for delay amounting to Rp49,809,990,000 on 561 financial service providers in the capital market.

ANTARA

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