Jakarta, Indonesia Sentinel — As 2024 approaches its end, Indonesia’s financial sector faces growing turbulence, with 17 banks declared bankrupt this year. The latest casualty, Bank Perekonomian Rakyat (BPR) Duta Niaga, officially lost its license on December 5, 2024. Located in Pontianak, West Kalimantan, the bank’s operations were halted following a decision by the Financial Services Authority (OJK).
LPS Steps In
The Indonesian Deposit Insurance Corporation (LPS) is overseeing the liquidation of BPR Duta Niaga while preparing to process insured deposit claims. LPS Secretary Jimmy Ardianto assured customers that deposits meeting the insurance criteria will be paid within 90 working days, or by April 29, 2025.
To qualify, deposits must adhere to LPS’s “3T” requirements: being recorded in the bank’s books, earning interest within the insured rate, and being free of criminal elements detrimental to the bank. Depositors can verify their accounts’ status through LPS’s official website or by visiting BPR Duta Niaga’s office once the claim process begins.
Advice for Customers
Amid the closures, Ardianto urged depositors to remain calm and avoid dealing with unauthorized individuals offering claim assistance for a fee. He also encouraged affected customers to consider transferring their funds to operational banks, emphasizing the continued safety of bank deposits insured by LPS.
Growing List of Bank Closures
BPR Duta Niaga joins a list of 16 other financial institutions that ceased operations this year. These include BPR Wijaya Kusuma, BPRS Mojo Artho in Mojokerto, and BPR Pasar Bhakti in Sidoarjo, among others. The closures underscore increasing challenges in Indonesia’s banking sector, driven by regulatory issues, mismanagement, and financial instability.
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Maintaining Trust in the Banking System
Despite these setbacks, Indonesia’s banking system remains robust, with numerous banks still operating securely. The government and financial institutions emphasize the importance of public trust, ensuring that the funds of compliant depositors are protected.
Moving Forward
The closure of 17 banks in 2024 raises concerns about financial stability in Indonesia’s regional banking landscape. While the LPS has mechanisms in place to protect depositors, the situation highlights the need for strengthened oversight and governance within the banking sector. For customers, it serves as a reminder to remain vigilant and ensure their deposits comply with LPS insurance requirements.
(Becky)
