5% of Rural Banks Have Not Met Core Capital, Merger and Acquisition Options

BANKING - JAKARTA. The People's Economy Bank (BPR) in Indonesia is facing a five-month deadline to meet a minimum core capital requirement of IDR 6 billion. Bank owners are under pressure to find ways to meet this requirement to avoid license revocation.

Dian Ediana Rae, the Executive Head of Banking Supervision at the Financial Services Authority (OJK), revealed that many BPRs have yet to meet the core capital requirement. As of March 2024, about 5% of the total 1,500 BPRs do not have IDR 6 billion in core capital.