Jakarta. The Financial Services Authority (OJK) has shut down three rural banks (BPR) in the first two months of 2026, citing concerns over financial soundness and depositor protection.

The closures follow seven rural bank failures in 2025 and reflect persistent challenges related to capital adequacy, governance, and business sustainability.

OJK has said most rural bank closures stem from weak capital positions and prolonged financial distress that could not be resolved through supervisory measures. In such cases, the regulator revokes the operating license and hands the bank over to the Deposit Insurance Agency (LPS) for liquidation, with customer deposits protected up to the statutory guarantee limit.

Rural banks closed in January–February 2026

1. BPR Suliki Gunung Mas (West Sumatra)
OJK revoked the license of BPR Suliki Gunung Mas, which operated in Lima Puluh Kota regency, under a decree dated Jan. 7. The regulator said the move was part of efforts to strengthen Indonesia’s banking system and maintain public trust.

2. BPR Prima Master Bank (East Java)
BPR Prima Master Bank, headquartered in Surabaya, lost its license on Jan. 27. All offices were closed immediately and business activities halted.

LPS formed a liquidation team to settle the bank’s assets and liabilities. Directors, commissioners and shareholders are barred from taking legal action related to the bank without LPS approval.

3. Perumda BPR Bank Cirebon (West Java)
On Feb. 9, OJK revoked the license of Perumda BPR Bank Cirebon. In its supervision, OJK identified fundamental weaknesses, including breaches of prudential principles, weak risk management and non-compliance with regulations, which eroded the bank’s financial health and business viability.

Problems at Perumda BPR Bank Cirebon had been flagged as early as Aug. 2, 2024, when the regulator placed the lender under Bank in Recovery status after its minimum capital adequacy ratio fell below 12% and its overall condition was deemed unsound. 

Bank Failures in 2025

The closures in early 2026 follow a series of rural bank shutdowns last year. OJK revoked the licenses of seven BPRs in 2025, fewer than the 20 closures recorded in 2024, but still signaling a gradual contraction of the sector.

Rural banks closed in 2025:

1. BPRS Gebu Prima (North Sumatra) – License revoked on April 17, 2025.

2. BPR Dwicahaya Nusaperkasa (East Java) – License revoked on July 24, 2025.

3. BPR Disky Suryajaya (North Sumatra) – License revoked on Aug. 19, 2025.

4. BPR Syariah Gayo (Aceh) – License revoked on Sept. 9, 2025.

5. BPR Artha Kramat (Central Java) – Closed through a shareholder-initiated self-liquidation.

6. BPR Nagajayaraya Sentrasentosa – Closed through self-liquidation at shareholders’ request.

7. BPR Bumi Pendawa Raharja (West Java) – License revoked on Dec. 15, 2025, after failed recovery efforts.

Add as a preferred source on Google +