Another Indonesian Bank Goes Bankrupt! OJK Revokes License of BPR Bali Artha Anugrah

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The revocation of a bank license is a rare and significant event, yet it has occurred for BPR Bali Artha Anugrah, adding to the increasing number of banks facing financial challenges in Indonesia this year.

The decision to revoke the license of People’s Economy Bank (BPR) Bali Artha Anugrah was made by the Financial Services Authority (OJK). This action was in accordance with Decision of the OJK Board of Commissioners Number KEP-34/D.03/2024 dated April 4, 2024, regarding the Revocation of the Business License of PT Bank Perkreditan Rakyat (BPR) Bali Artha Anugrah.

The decision was due to unresolved issues regarding the bank’s capital and liquidity. PT BPR Bali Artha Anugrah was located at Jalan Diponegoro No. 171, Kota Denpasar, Bali Province.

Kristrianti Puji Rahayu, the Head of OJK Bali Province, has stated that the revocation of PT BPR Bali Artha Anugrah’s business license is a part of the supervisory measures OJK takes to fortify the banking industry and safeguard consumers.

Since September 19, 2023, OJK had placed PT BPR Bali Artha Anugrah under its watch as a Troubled Bank with an Unhealthy Health Level status. Additionally, on March 19, 2024, OJK declared PT BPR Bali Artha Anugrah as a Resolving Bank, following the bank’s failure to address capital and liquidity issues, as stipulated in the Financial Services Authority Regulation (POJK) Number 28 of 2023 dated December 29, 2023, regarding the Determination of Status and Follow-up of Supervision of People’s Credit Banks and Islamic People’s Credit Banks.

“However, the Management and Shareholders of PT BPR Bali Artha Anugrah were unable to resolve the bank’s issues,” explained Puji in a press release on Thursday (4/4/2024).

Based on a Copy of the Decision of the Board of Commissioners of the Deposit Insurance and Bank Resolution Agency Number 58/ADK3/2024 dated April 2, 2024, concerning the Resolution of PT BPR Bali Artha Anugrah, the Deposit Insurance Agency (LPS) decided not to save PT BPR Bali Artha Anugrah and requested OJK to revoke the bank’s business license.

In response to the LPS’s request, OJK, based on Article 19 of the POJK, proceeded to revoke the business license of PT BPR Bali Artha Anugrah.

Following the revocation of the business license, LPS will fulfill its deposit insurance function and carry out the liquidation process in accordance with the Republic of Indonesia Law Number 24 of 2004 concerning the Deposit Insurance Corporation and Law Number 4 of 2003 concerning the Development and Strengthening of the Financial Sector.

“We urge BPR customers to remain calm because public funds in banking, including BPR, are guaranteed by the LPS in accordance with applicable regulations,” said Puji.

In conclusion, the situation regarding BPR Bali Artha Anugrah serves as a reminder of the importance of sound financial management for banks and the significance of regulatory oversight. The impacts are far-reaching, emphasizing the need for all stakeholders to work together to maintain the stability and security of the banking industry in Indonesia.

With this latest development, it is important for depositors and customers of other banks to stay informed and be reassured that the OJK and LPS are working to ensure the safety and integrity of the banking system, providing a safe haven for public funds. Always stay informed and aware of the financial institutions where you entrust your money for safekeeping.


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