Bankrupt Banks in Indonesia This Year Reach 19, Here’s the List

Jakarta, The number of bankrupt banks has increased and is approaching 20 as the end of the year approaches. The latest is PT Bank Perekonomian Rakyat (BPR) Kencana, located at Jl. Raya Cimindi (Cilember) No. 271, Kel. Cigugur Tengah, Kec. Cimahi Tengah, Kota Cimahi, Provinsi Jawa Barat.

The number of failed BPRs currently exceeds the average number of failed banks each year according to the Deposit Insurance Corporation (LPS). According to the Chairman of the Board of Commissioners (DK) of the Deposit Insurance Corporation (LPS), Purbaya Yudhi Sadewa, every year there are about 6 to 7 BPRs that fail. Primarily, the banks that fail are caused by mismanagement by their owners.

Meanwhile, the Financial Services Authority (OJK) mentioned in August that a significant number of BPRs have been closed this year. The Head of the Banking Supervision Executive, Dian Ediana Rae, stated that the closure of BPRs, which “almost reached” 20 banks, indicates that there has been no disturbance at all.

“The closure of BPR can be a good indication, I think, of how the system works in Indonesia.” This means that, in fact, the BPRs that we have closed, which are now almost 20, have not caused any upheaval or unrest in the community at all,” concluded Dian in a webinar by the Indonesian Banking Development Institute (LPPI), Friday (26/7/2024).

Dian, who is an ex-officio member of the Deposit Insurance Corporation (LPS), stated that the institution can respond quickly to the failures of BPRs in various locations. So that the public depositors are safe, and the problems can be resolved quickly.

“And this is a very significant confidence, so that in the future the public will not hesitate to save in commercial banks or BPRs that are under our increasingly better supervision over time,” he said.

So, which BPRs have fallen throughout this year?