There are 12 people’s economic banks or rural (BPR) that have gone bankrupt and had their business licenses revoked by the Financial Services Authority (OJK) due to fraud. However, it’s not just about bankruptcy, there are other challenges facing the BPR industry.
Throughout 2024, there have been 12 BPRs that have gone bankrupt and had their business licenses revoked by the OJK. Most recently, PT BPR Bank Jepara Artha (Perseroda) went bankrupt and had its license revoked by the OJK. Meanwhile, last year, four banks went bankrupt in Indonesia. Since 2005, a total of 134 banks have gone bankrupt in the country. The series of banks that went bankrupt mainly occurred due to abuse of authority or fraud.
In the midst of the increasing number of bankrupt BPRs, there are other challenges facing the BPR industry this year. Chairman of the Association of Indonesian People’s Economic Banks (Perbarindo) Tedy Alamsyah said that the current focus for the BPR industry is improving credit quality. “This is because the NPL ratio (non-performing loans) tends to increase, in line with the end of the credit relaxation period,” said Tedy as quoted by Bisnis.com.
Based on Indonesian Banking Statistics released by the OJK, the ratio of non-performing loans including bad loans for BPRs swelled to 10.7% as of March 2024. In the same period tlast year, BPR’s NPL was still at the level of 8.51%.
That said 12 BPRs are;
1. BPR Bank Jepara Artha (Perseroda)
2. PT BPR Dananta
3. BPRS Saka Dana Mulia
4. BPR Bali Artha Anugrah
5. BPR Sembilan Mutiara
6. BPR Aceh Utara
7. PT BPR EDCCASH
8. Perumda BPR Bank Purworejo
9. PT BPR Bank Pasar Bhakti
10. PT BPR Usaha Madani Karya Mulia
11. BPRS Mojo Artho Kota Mojokerto (Perseroda)
12. Koperasi BPR Wijaya Kusuma