20 Banks Closed Throughout 2024, Here’s the List

Jakarta – The number of banks that went under in 2024 reached 20. Among them, People’s Credit Banks (BPR) and Sharia BPRs dominated the list of institutions whose licenses were revoked by the Financial Services Authority (OJK).

This number aligns with the prediction made by Dian Ediana Rae, the Executive Chairman of Banking Supervision at OJK, who estimated that up to 20 BPRs could be closed.
“It could reach up to 20 (closed BPRs),” Dian stated during an interview at the Grand Hyatt Hotel, Central Jakarta, Monday (14/10/2024).

Dian explained that one reason behind the closure of many BPRs was the challenges in capital injection by local governments, which own these banks. Capital injection for troubled BPRs often faces delays due to political processes at the regional government level.
“Naturally, for regional or central governments to inject capital, it takes a very long time due to political processes. Meanwhile, BPRs as banks require swift rescue actions,” he said.

As a result, many BPRs were unsalvageable. To prevent further closures, OJK introduced a new policy prohibiting such banks from being owned by various regional government heads. Instead, they will be consolidated under Regional Development Banks (BPD).
“Going forward, it means they can no longer be owned by, for example, multiple district heads in a region. Instead, ownership will be centralized under provincial governments, although districts can still hold shares, but under the control of BPD,” Dian elaborated.

Regarding the revocation of business licenses (CIU) for BPR/BPR Sharia, Dian emphasized that OJK had considered several factors. Supervisors continuously monitor the implementation of recovery plans by the BPR/BPR Sharia and their Controlling Shareholders (PSP).
“Corrective measures such as additional capital injections, corporate actions, and consolidation are some of the recovery efforts undertaken during the BPR’s rehabilitation phase. The realization of these recovery plans by BPRs and PSPs determines whether the BPR can return to normal or must be resolved,” Dian explained on Tuesday (24/12/2024).

OJK’s supervisory focus aims to create an ethical and impactful BPR/BPRS industry, especially in their respective localities. Early detection of issues and conditions in BPRs or BPR Sharia in normal and distressed supervision is critical to their development and strengthening.

Dian assured that OJK will continue to monitor all BPRs and BPR Sharia in Indonesia, stating that most are currently under normal supervision.
“Currently, almost all BPRs/BPRS in Indonesia are recorded as being under normal supervision,” Dian clarified.

List of 20 Banks Closed Throughout 2024:

1. BPR Arfak Indonesia
   The Financial Services Authority (OJK), in line with the decision of the OJK Commissioner Board Member Number KEP-105/D.03/2024 dated December 17, 2024, revoked the business license of PT BPR Arfak Indonesia located at Jalan Trikora Wosi, Manokwari, West Papua Province.
   The license revocation was part of OJK’s efforts to strengthen the banking industry and protect consumers.
2. BPR Kencana Cimahi
   The business license of PT BPR Kencana in Cimahi, West Java, was revoked by OJK based on the decision Number KEP-102/D.03/2024, dated December 16, 2024.
3. BPR Pakan Rabaa
   OJK revoked the license of PT BPR Pakan Rabaa in Solok Selatan, West Sumatra, per the decision Number KEP-100/D.03/2024, dated December 11, 2024.
4. PT BPR Duta Niaga
   License revocation followed the decision Number KEP-98/D.03/2024, dated December 5, 2024.
5. BPRS Kota Juang (Perseroda)
   OJK revoked the business license of PT BPRS Kota Juang (Perseroda) in Aceh per decision Number KEP-97/D.03/2024, dated November 29, 2024.
6. PT BPR Nature Primadana Capital
   License revoked per decision Number KEP-70/D.03/2024, dated September 13, 2024.
7. PT BPR Sumber Artha Waru Agung Sidoarjo
   License revoked per decision Number KEP-57/D.03/2024, dated July 24, 2024.
8. PT BPR Lubuk Raya Mandiri
   License revoked following status resolution on July 9, 2024.
9. PT BPR Bank Jepara Artha
   License revoked per decision on April 30, 2024.
10. PT BPR Dananta
    License revoked per decision Number KEP-38/D.03/2024, dated April 30, 2024.
11. PT BPRS Saka Dana Mulia
    License revoked per decision Number KEP-36/D.03/2024, dated April 19, 2024.
12. PT BPR Bali Artha Anugrah
    License revoked per decision Number KEP-34/D.03/2024, dated April 4, 2024.
13. PT BPR Sembilan Mutiara
    License revoked on April 2, 2024.
14. PT BPR Aceh Utara
    License revoked on March 4, 2024.
15. PT BPR EDCCASH
    License revoked per decision Number KEP-26/D.03/2024, dated February 27, 2024.
16. Perumda BPR Bank Purworejo
    License revoked per decision Number KEP-20/D.03/2024, dated February 20, 2024.
17. PT BPR Bank Pasar Bhakti
    License revoked on February 16, 2024.
18. PT BPR Madani Karya Mulia
    License revoked on February 5, 2024.
19. PT BPRS Mojo Artho Kota Mojokerto (Perseroda)
    License revoked on January 26, 2024.
20. Koperasi BPR Wijaya Kusuma
    License revoked per decision Number KEP-1/D.03/2024, dated January 4, 2024.