PORTALJABAR, BANDUNG CITY - The Financial Services Authority (OJK) continues to supervise People's Economic Banks (BPR) by continuing to supervise a number of BPRs from the West Java Province OJK Office to the Jabodebek & Banten Province OJK Offices.

Chief Executive of OJK Banking Supervision, Dian Ediana Rae, said that the supervision of a number of BPRs is to improve the supervisory function to ensure that BPR operations have implemented prudential principles in accordance with provisions supported by information technology infrastructure and implemented good bank governance.

"We encourage BPRs to continue strengthening capital either through consolidation or mergers. "So from around 1,600 existing BPRs it will drop to around 1,000 BPRs," said Dian, after conveying a number of BPR supervisions in Bandung, Tuesday (23/1/2024).

"We also welcome the supervision of a number of BPRs in the City and Regency of Bogor, Depok City, and Bekasi (Bodebek) City and Regency at the OJK Jabodebek & Banten Province Office," he added.

According to Dian, the transfer of a number of BPRs was carried out taking into account the geographical location of the BPR offices which are closer to Jakarta, so that supervision can be carried out more effectively.

"This step is also a follow-up to the mandate of Law Number 4 of 2023 concerning Development and Strengthening of the Financial Services Sector (P2SK) to strengthen BPR supervision and strengthen OJK governance," he said.

Dian said that all supervisory and licensing duties for all BPRs in the Bodebek area would be transferred from the West Java Province OJK Office to the Jabodebek and Banten Province OJK Offices starting January 1 2024.

This handover activity was coupled with capacity building activities with the theme "Performance Management to Increase Business Productivity" which was attended by BPR Management in the Bodebek City and Regency areas.

The implementation of capacity building is to increase the capacity, quality and performance of BPR. Also attending the activity were the Head of the West Java Province OJK, Indarto Budiwitono and the Head of the Jabodebek and Banten Province OJK, Roberto Akyuwen.

The number of Bodebek BPRs has decreased from the previous 124 BPRs in 2016 to 100 BPRs in 2023. The decrease in the number of BPRs is due to monitoring efforts in restructuring BPRs.

A total of 11 BPRs carried out corporate actions in the form of mergers, 3 BPRs moved their head offices to other areas and as many as 9 BPRs were closed (revoked business permits).

While the West Java Provincial OJK Office carried out its duties and supervisory functions for BPRs in the Bodebek area, it recorded a significant increase in assets, credit distribution and the collection of third party funds (DPK).

As of December 31 2023, BPR Bodebek's total assets were recorded at IDR 6.709 trillion, an increase of IDR 1.506 trillion (29.31 percent) when compared to 3 periods (2020) of IDR 5.203 trillion.

Meanwhile, the realization of credit distribution amounted to IDR 4.828 trillion, an increase of IDR 1.094 trillion (29.31 percent) compared to 2020 of IDR 3.733 trillion and the collection of TPF amounted to IDR 4.054 trillion, an increase of IDR 982 billion (31.98 percent) compared to 2020 position of IDR 3.07 trillion.

"We appreciate the extraordinary constructive cooperation and coordination from all BPRs in the Bodebek area to be able to grow and develop together so that we can face various challenges together with the OJK of West Java Province," he said.

Indarto hopes that BPRs in the Bodebek area will maintain positive performance and continue efforts to improve credit quality, especially resolving unresolved loans for debtors affected by COVID-19, strengthening capital in order to continue the minimum core capital and ensuring the completeness of management in order to strengthen governance. managing BPR.

"OJK will also continue to optimize policy improvements in the financial services sector so that an increasingly effective supervisory system is developed and implemented so that all financial services institutions can grow healthily and sustainably," he said. (no/rdp*)