OJK Revokes Licenses of 7 Rural Banks in 2025

Financial Distress Leads to License Revocation

The Financial Services Authority (OJK) has revoked the licenses of seven rural banks in Indonesia during 2025. All affected institutions were categorized as Rural Banks (BPR) and Rural Sharia Banks (BPRS). The decision came after these banks failed to improve their financial condition despite regulatory supervision and guidance.

Regulatory Action and Deposit Protection

The license revocation was carried out as a last resort measure when the banks failed to meet capital, governance, and liquidity requirements. The Indonesia Deposit Insurance Corporation (LPS) will oversee the resolution process and protect customer deposits according to existing regulations. Customers are advised to remain calm and follow the official claims process announced by LPS.

Enhanced Regulatory Oversight

Throughout 2025, OJK has maintained strict supervision over rural banks to ensure financial system stability, particularly in regional areas, and protect customer interests. The regulatory body continues to monitor the sector closely to prevent similar issues in the future.