Indonesia's Financial Services Authority outlined its strategy to strengthen Indonesia's rural banks and Islamic rural banks through the 2024-2027 roadmap for the BPR and BPRS industry. The roadmap is positioned as the main framework for business strategy and sector development under the 2023 financial sector law, with four pillars covering stronger structure and competitiveness, faster digitalisation, a stronger local role for BPR and BPRS, and tighter regulation, licensing and supervision. The update is framed against rising competition in micro and small business lending, changing customer expectations and the impact of financial technology. The authority said the sector continues to post positive results. As of March 2026, total assets rose 3.70 percent year on year to IDR 236.69 trillion, lending and financing increased 2.83 percent to IDR 176.96 trillion, and third party funds grew 3.16 percent to IDR 165.49 trillion. Aggregate capital adequacy stood at 27.20 percent. Lending to micro, small and medium enterprises accounted for 50.07 percent of total lending and financing. On consolidation, by the end of April 2026 OJK had approved 57 BPR and BPRS to merge into 18 institutions, while more than 200 remained in the licensing process for mergers or consolidations. Most BPR and BPRS have met the minimum core capital requirement of IDR 6 billion, with the remainder pursuing capital injections and or consolidation. OJK said it will continue supporting implementation of the roadmap with relevant stakeholders and is also promoting closer links between BPR and BPRS and regional development banks, including consolidation of local government-owned institutions under regional development banks.
OJK2026-06-02
Indonesia's Financial Services Authority advances rural bank strengthening roadmap as 57 BPR and BPRS consolidate into 18
The Indonesian Financial Services Authority published a 2024-2027 roadmap to strengthen rural and Islamic rural banks under the 2023 financial sector law, focusing on structure and competitiveness, digitalisation, local roles, and tighter regulation, licensing and supervision. The authority reported continued sector growth, high capital adequacy and ongoing consolidation, with 57 institutions approved to merge into 18 and over 200 in the licensing process. It will support implementation with stakeholders and promote closer links and consolidation with regional development banks.