DIGIVESTASI - The number of rural banks (BPR) continues to decline. In the first three months of this year, or throughout the first quarter of 2024, ten BPRs were closed. The Financial Services Authority (OJK) explained this phenomenon. According to the Indonesian Banking Statistics data released by the OJK, the number of BPRs in Indonesia reached 1,392 units in March 2024, a decrease of 10 units compared to December 2023, which had 1,402 BPRs. Over the course of a year, the shrinkage reached 34 BPRs compared to March 2023, which had 1,426 BPRs. This shrinkage occurred amid the rampant revocation of BPR business licenses by the OJK due to bankruptcy.

Recently, the OJK revoked the business license of BPR Jepara Artha in accordance with the OJK Board of Commissioners Member Decision No. KEP-42/D.03/2024 dated May 21, 2024, concerning the Revocation of Business License of PT BPR Bank Jepara Artha (Perseroda). In the first three months of this year, the OJK also revoked the business licenses of BPR Aceh Utara, BPR EDCCASH, Perumda BPR Bank Purworejo, PT BPR Bank Pasar Bhakti, PT BPR Usaha Madani Karya Mulia, BPRS Mojo Artho Kota Mojokerto (Perseroda), and Koperasi BPR Wijaya Kusuma.

As a result, up to now, 12 BPRs have gone bankrupt and had their licenses revoked by the OJK, while last year only 4 BPRs had their licenses revoked. OJK's Chief Executive of Banking Supervision, Dian Ediana Rae, stated that the revocation of business licenses for BPRs was done to clean up non-credible BPRs that are unable to protect the interests of the public. "[The license revocation] has been done with thorough consideration. 

Thus, when they cannot be saved, we hand them over to the Deposit Insurance Corporation [LPS]," he said to the media some time ago in Jakarta. In addition to license revocations, several BPRs have also undergone consolidation or mergers. Dian explained that the OJK had approved the merger of large BPRs up to March 2024, merging 43 BPRs into 14 BPRs. There are also 32 BPRs that are in the process of fulfilling consolidation requirements to become 10 BPRs.

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