Indonesian Banks Weigh In on OJK's Proposal to Remove KBMI 1 Category

Banks Study Potential Impact and Consolidation Strategies

The Financial Services Authority (OJK) has proposed eliminating the KBMI 1 category, currently defined as banks with core capital up to Rp6 trillion, as per POJK No.12/POJK.03/2021. Several affected banks, including PT Bank Neo Commerce (BNC), PT Bank BCA Syariah, and PT Krom Bank Indonesia, have begun assessing the potential impact and exploring consolidation strategies.

Bank Responses to OJK Proposal

• BNC's Position: BNC's CEO, Eri Budiono, stated that the bank is currently studying the proposal and discussing potential compliance strategies with OJK and its controlling shareholders. Budiono emphasized that the bank will evaluate available options to meet the new regulations.
• BCA Syariah's Stance: BCA Syariah's director, Pranata, indicated that the bank is awaiting official notification from OJK before making further decisions. Pranata noted that, as of now, the bank has no plans for corporate actions such as mergers or acquisitions.
• Krom Bank's Strategy: Krom Bank's President Director, Anton Hermawan, revealed that the bank continuously explores collaboration and strategic synergy opportunities within the financial industry. Krom Bank has been implementing various strategies, including business collaborations with fintech, e-commerce, and other financial institutions to expand its service reach and strengthen its product portfolio, particularly in digital lending and loan channeling.

Rationale Behind OJK's Proposal

OJK's proposal aims to promote banking consolidation, thereby strengthening the national banking structure and enhancing efficiency. According to Dian Ediana Rae, OJK's Executive Head of Banking Supervision, the elimination of the KBMI 1 category is expected to push smaller banks to consolidate into larger entities. As of September 2025, the core capital of BNC stood at Rp3.94 trillion, BCA Syariah at Rp3.24 trillion, and Krom Bank at Rp3.31 trillion, all falling within the KBMI 1 category.

Implications for Indonesian Banking Sector

The proposed elimination of KBMI 1 is likely to have significant implications for the Indonesian banking landscape. Smaller banks may need to consider consolidation strategies, including mergers and acquisitions, to comply with the anticipated regulatory changes. This move is expected to lead to a more robust and efficient banking sector, better equipped to support Indonesia's economic growth.