The Indonesia Financial Services Authority has issued a new regulation on minimum capital adequacy and minimum core capital for rural banks, updating its earlier 2015 capital framework. The measure is intended to strengthen capitalization in the Bank Perekonomian Rakyat (BPR) sector so institutions can improve competitiveness, reach greater scale and absorb operational risks, while aligning the rules with newer banking and accounting requirements. The regulation allows minimum core capital to be met through additional paid-in capital and, subject to specified conditions, contributed fixed assets in the form of land and buildings. It also relaxes the deadline for completing administrative documentation linked to paid-in capital requirements and revises the composition of regulatory capital, including by treating revaluation surplus on fixed assets as a component of core capital. In addition, it refines sanctions for BPRs that fail to meet the minimum core capital requirement, with the stated aim of strengthening enforcement. The regulation took effect on 30 June 2026.
OJK2026-07-03
Indonesia Financial Services Authority issues new rural bank capital rules and strengthens minimum core capital enforcement
The Indonesia Financial Services Authority has issued a new capital regulation for rural banks (BPRs), replacing parts of its 2015 framework and aligning the regime with newer banking and accounting rules. It changes how minimum core capital can be met and counted, eases some administrative deadlines for paid-in capital and strengthens sanctions for noncompliance. The regulation has applied since 30 June 2026.