When choosing a bank to save, customers need to be selective because banks can go bankrupt. There will be two banks going bankrupt in Indonesia in 2023. The two banks are People’s Economic Banks (BPR). This information was conveyed by the Indonesian Deposit Insurance Corporation (LPS).
Bank in Indonesia Went Bankrupt in 2023
The BPRs that went bankrupt were PT BPR Bagong Inti Marga (BPR BIM) and BPR Karya Pemuda Indramayu. BPR BIM was first established on March 5, 1992. The establishment took place by obtaining permission from the Minister of Finance, Muhamad Bagong Subardiyono. Then the bank changed its name to PT BPR Bagong Inti Marga. This bank was once the largest in Banyuwangi. The number of customers had grown to 2,907 when the bank closed. At the time of closing, the bank had a deposit value of IDR 13.64 billion. Then the BPR disbursed funds to customers amounting to IDR 13.14 billion.
The second bank to go bankrupt in Indonesia in 2023 is BPR KRI in Indramayu Regency. This BPR was founded in 2010. BPR KRI is a combination of fifteen PD BPRs throughout Indramayu, which became one company through consolidation. The number of customers from this BPR is much higher than BPR Bagong Inti Marga, namely 25,176 customers. Meanwhile, the value of savings when bankrupt reached IDR 285 billion. LPS has replaced customers’ money, amounting to IDR 248 billion.
LPS moved quickly to return customers’ money because LPS needed to maintain its credibility. Money that customers put into BPR gets banking guarantees from LPS. BPR BIM’s licence was revoked on February 3, 2023. Meanwhile, BPR KRI had its licence revoked on September 12, 2023, due to a fraud case in management. Until now, LPS has had assets of IDR 210 trillion, so these assets are considered sufficient when a bank experiences problems.
The chairman of the LPS Board of Commissioners, Purbaya Yudhi Sadewa, said that LPS is currently sufficient because its assets are up to IDR 210 trillion.
“IDR 210 trillion in assets is enough to maintain stability when a bank has problems,” said Purbaya.
In fact, there are 120 banks in Indonesia that have had their licences revoked since 2005. The majority of the banks whose licences have been revoked are BPRs or BPRS. This is a lesson for BPR management to always maintain the health of the BPR where they work. Don’t let any fraud cases happen again if you want BPR to be able to continue operating.