OJK Sees Reduction in Rural Bank Failures for 2025

Industry Strengthening Efforts Bear Fruit

The Financial Services Authority (OJK) has reported a significant decrease in the number of Rural Banks (BPR/BPRS) having their operating licenses revoked during 2025 compared to the previous year. According to OJK's Executive Supervisor for Banking, Dian Ediana Rae, this positive development aligns with the implementation of the BPR/BPRS Industry Development and Strengthening Roadmap (RP2B) introduced in 2024.

Key Statistics and Performance Indicators

The data shows a notable reduction in bank closures, with only 7 BPR/BPRS having their licenses revoked in 2025, compared to 15 in 2024. Dian Ediana Rae explained that the banks that were closed typically suffered from poor performance, often due to fraud incidents and inadequate governance practices. The OJK has been proactive in strengthening the industry through various regulatory measures, including guidelines on good governance, anti-fraud strategies, and enhanced internal audit functions.

Positive Industry Performance

Despite the challenges, the overall BPR/BPRS industry demonstrated stable growth throughout 2025. Key performance indicators include:

• Total assets grew by 5.38% year-on-year to reach Rp176.66 trillion by November 2025
• Third-party funding (DPK) increased by 5.07% year-on-year to Rp167.7 trillion
• Capital adequacy ratios remained strong at 29.32% for BPR and 19.01% for BPRS, well above regulatory requirements

Risk Management and Future Outlook

While the non-performing loan (NPL) ratio showed a slight increase, OJK maintains that credit risk remains manageable. The authority continues to monitor the situation closely while implementing measures to maintain industry stability. The reduction in bank failures and overall industry performance suggests that OJK's strengthening efforts are yielding positive results.