Indonesian Banks Respond to OJK's Plan to Remove KBMI 1 Classification

Background on KBMI Classification

The Financial Services Authority (OJK) is planning to eliminate the KBMI 1 classification, which currently includes banks with core capital up to Rp6 trillion. This move is part of a broader effort to consolidate the banking sector and strengthen the national banking structure. The existing classification system includes four categories: KBMI 1 (core capital up to Rp6 trillion), KBMI 2 (Rp6 trillion to Rp14 trillion), KBMI 3 (Rp14 trillion to Rp70 trillion), and KBMI 4 (above Rp70 trillion).

Reactions from Conglomerate-Owned Banks

Several conglomerate-owned banks have responded to the OJK's plan, outlining their strategies to comply with the anticipated regulatory changes.

PT Bank Panin Dubai Syariah Tbk (PNBS)

PNBS, a subsidiary of Bank Panin (PNBN) controlled by the Mu'min Ali Gunawan family, has stated that it is currently assessing the implications of the OJK's plan. The bank's management has confirmed that they will comply with the new regulations but have not yet established a timeline for implementation.

PT Bank Artha Graha Internasional Tbk (INPC)

INPC, part of the Artha Graha Network owned by Tomy Winata, views the OJK's plan as a government effort to strengthen the national banking industry. The bank supports the initiative but has requested a structured roadmap and transition period to allow for strategic planning and gradual compliance. INPC also suggested that banks with strong financial conditions should be given options for compliance.

PT Bank Multiarta Sentosa Tbk (Bank Mas)

Bank Mas, owned by the Wings Group founded by Johanes Ferdinand Katuari and Harjo Sutanto, is closely monitoring the developments and is prepared to take necessary steps. The bank plans to evaluate its financial condition, business structure, and growth prospects, while also enhancing its IT infrastructure to support digital transformation.

Implications and Next Steps

The OJK's plan to remove the KBMI 1 classification is expected to drive consolidation in the banking sector, potentially leading to stronger and more efficient banks. The affected banks are currently in the process of assessing their strategies and preparing for the anticipated changes. The final implementation details and timeline are expected to be clarified by the OJK in the near future.