Executive Summary

Key insights and market outlook

The Financial Services Authority (OJK) has revoked the operating licenses of seven Rural Banks (BPR/BPRS) in 2025 due to capital inadequacy and financial distress ¹

²³. The closed banks include BPRS Gebu Prima, BPR Dwicahaya Nusaperkasa, and BPR Disky Suryajaya among others. OJK is accelerating consolidation in the rural banking sector to enhance industry resilience ³. The Lembaga Penjamin Simpanan (LPS) will handle customer claims for the failed banks ¹.

Full Analysis

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Deep Dive Analysis

OJK Revokes Licenses of Seven Rural Banks in 2025 Consolidation Drive

Strengthening Rural Banking Sector Through Consolidation

The Financial Services Authority (OJK) has taken decisive action to strengthen Indonesia's rural banking sector by revoking the operating licenses of seven Rural Banks (BPR/BPRS) in 2025 ¹

²³. This move comes as part of OJK's broader efforts to accelerate consolidation within the industry, aiming to enhance the overall resilience and competitiveness of smaller banks ³.

Banks Affected by License Revocation

The seven BPR/BPRS banks that had their licenses revoked include:

BPRS Gebu Prima
BPR Dwicahaya Nusaperkasa
BPR Disky Suryajaya
BPRS Gayo Perseroda
BPR Artha Kramat
BPR Nagajayaraya Sentrasentosa
BPR Bumi Pendawa Raharja

These institutions were found to be non-compliant with capital requirements and were experiencing significant financial distress, making them ineligible to continue operations ²

.

Regulatory Framework and Next Steps

The decision to revoke the licenses was made after OJK determined that these banks could not recover their financial health despite intensive supervision and guidance ³

. The process of resolving the failed banks will be handled by the Lembaga Penjamin Simpanan (LPS), which will insure customer deposits according to prevailing regulations ¹.

Future Outlook: Continued Consolidation

As Indonesia enters 2026, OJK remains committed to continuing its consolidation efforts, not just in the BPR/BPRS segment but also among Regional Development Banks (BPD) ⁴

. The agency has already made significant progress in forming Banking Business Groups (KUB) for several BPDs, with licenses issued for 10 banks grouped into four KUBs ⁴.

References