OJK Intensifies Banking Consolidation: 226 BPR/BPRS to Become 79 Entities

Strengthening Industry Structure

The Financial Services Authority (OJK) is continuing its banking consolidation program by processing the merger of 226 Rural Banks (BPR) and Rural Sharia Banks (BPRS) into 79 entities. This move is part of OJK's broader efforts to strengthen the capital structure, governance, and overall resilience of the banking industry.

Progress and Implementation

As of December 10, 2025, OJK has successfully approved the merger of 130 BPR/BPRS into 45 entities. The agency is now processing the consolidation of the remaining institutions. According to Dian Ediana Rae, OJK's Executive Head of Banking Supervision, the consolidation is crucial for enhancing the banks' business scale and improving their services, particularly for micro, small, and medium enterprises (MSMEs) in regional areas.

Rationale Behind Consolidation

The consolidation is designed to ensure that BPR and BPRS institutions have adequate business scale to face economic challenges while enhancing their service quality. OJK has been actively monitoring the industry, having revoked the licenses of seven BPRs throughout 2025, with the most recent being PT BPR Bumi Pendawa Raharja. The authority provided the bank's management and shareholders with opportunities to restructure, particularly addressing capital and liquidity issues, before the final decision.

Impact on Financial Sector

This consolidation is expected to create stronger, more resilient banking institutions capable of supporting local economic development. By reducing the number of entities while increasing their scale, OJK aims to improve the overall stability and competitiveness of the BPR/BPRS sector in Indonesia's financial landscape.