There are three banks that have gone bankrupt throughout this year, with the latest being BPR Indotama UKM Sulawesi, which is now undergoing liquidation. So, what steps need to be taken to ensure the protection of customer funds when a bank goes bankrupt?

BPR Indotama UKM Sulawesi had its license revoked by the Financial Services Authority (OJK) through the Decision of the Board of Commissioners of the Financial Services Authority Number KEP-79/D.03/2023, dated November 15, 2023, regarding the revocation of the business license of PT Bank Perkreditan Rakyat Indotama UKM Sulawesi. The Deposit Insurance Corporation (LPS) will then carry out the process of paying customer deposit insurance claims and implementing the liquidation.

"LPS will conduct reconciliation and verification of deposit data and other information to determine the deposits that will be paid," said LPS Secretary Dimas Yuliharto, as quoted in a written statement on Tuesday (21/11/2023). With the addition of this failed bank, a total of 121 Rural Credit Banks (BPR) have failed since 2005 or since the establishment of LPS. Throughout this year, three banks have gone bankrupt, all of which were BPRs. Before BPR Indotama UKM Sulawesi, PT BPR Bagong Inti Marga or BPR BIM had its license revoked on February 3, 2023. Subsequently, BPR Karya Remaja Indramayu or BPR KRI also had its license revoked by the OJK on September 12, 2023.