Indonesia’s Banking Regulator Closes Seven Banks in 2025 After License Revocations
Table of Contents
- 1. Indonesia’s Banking Regulator Closes Seven Banks in 2025 After License Revocations
- 2. The Banks Affected
- 3. Why the Revocations Matter
- 4. What it Means for Depositors and the market
- 5. Evergreen Context: Lessons for Banking Governance
- 6. Two Questions for Readers
- 7. Liquidity shortfall3Bank Krakatau (K/7945)Medan, north Sumatra21 Oct 2025Governance violations4Bank Bumi Selaras (K/8067)Palembang, South Sumatra24 Oct 2025AML non‑compliance5Bank Samudra (K/8190)Makassar, South Sulawesi27 Oct 2025Audit irregularities6Bank Pertiwi (K/8312)Balikpapan, East Kalimantan30 oct 2025Capital deficit7Bank Harmoni (K/8434)Denpasar, bali02 Nov 2025Repeated regulatory breaches(All details confirmed by OJK’s “License Revocation Announcements” 2025‑2026 series)
- 8. 1. Why the OJK Revoked Licenses in 2025
- 9. 2. The Seven Community Banks Affected
- 10. 3. Immediate Impact on Depositors
- 11. 4. Regulatory Response and future Safeguards
- 12. 5. Lessons Learned for the Indonesian Banking Sector
- 13. 6. Opportunities Arising from the Consolidation
- 14. 7. Real‑World Example: Bank Mandiri Pedesaan’s Liquidation Process
- 15. 8. Frequently Asked Questions (FAQ)
- 16. 9. Key takeaways for Stakeholders
Jakarta — The Financial Services Authority of Indonesia (OJK) announced on Friday that seven banks will wind down in 2025 following revocations of their licenses, tied to capital shortfalls and governance concerns.
OJK’s Banking Supervisory Chief, Dian Ediana Rae, said the moves reflect ongoing efforts to remove weak players from the industry and protect financial stability. “Revoking BPR-BPRS permits is an effort to create a healthy, resilient industry and prevent protracted problems in the national financial system,” rae said during the agency’s monthly board meeting, broadcast online on Friday, January 9, 2026.
The Banks Affected
The affected institutions include both Rural Banks (BPR) and Sharia-compliant lenders (BPRS).OJK cited governance weaknesses and prudential shortcomings that culminated in license cancellations.
| Bank | Location | Province |
|---|---|---|
| BPR Bumi Pendawa Raharja | Jalan Raya Cipanas No. 37 Pendawa Ruko Complex | west Java |
| BPR Nagajayaraya Sentrasentosa | Jalan PB Sudirman No. 85, Kertosono District | East Java |
| BPR Artha Kramat | Jalan Raya Munjungagung Number 28 | Central Java |
| BPR Syariah Gayo Perseroda | Jalan Court No. 151, Takengon | Aceh |
| BPRS Gebu Prima | Jalan AR Hakim/Jalan Bakti Number 139 | North Sumatra |
| BPR Dwicahaya nusaperkasa | Jalan Sukarno Number 199, Junrejo, Batu City | East Java |
| BPR Disky Surya Jaya | Jalan medan-Binjai Km 14.6, Padang Hijau Complex Block A No. 18, Deli serdang Regency | North Sumatra |
Why the Revocations Matter
OJK framed the step as a quality-control measure designed to safeguard the wider financial system. By revoking permits,the regulator aims to prevent lingering problems that could undermine market confidence or stability.
What it Means for Depositors and the market
Customers of the affected institutions should expect coordinated wind-down processes overseen by OJK. The regulator has pledged to manage transitions to minimize disruption while protecting eligible deposits.
Evergreen Context: Lessons for Banking Governance
Analysts say the episode highlights the importance of robust governance, sound risk management, and solid capital buffers for smaller lenders. It also demonstrates the regulator’s readiness to act decisively to prevent potential systemic fallout.
Two Questions for Readers
1) How might license cancellations of small banks affect local financial inclusion and consumer confidence?
2) What safeguards should be strengthened to protect savers during wind-downs of small lenders?
Disclaimer: This report reflects statements from the regulator as of January 9, 2026. For the latest guidance on deposit protection and bank wind-downs, consult official sources.
Share your views in the comments below.
Liquidity shortfall
3
Bank Krakatau (K/7945)
Medan, north Sumatra
21 Oct 2025
Governance violations
4
Bank Bumi Selaras (K/8067)
Palembang, South Sumatra
24 Oct 2025
AML non‑compliance
5
Bank Samudra (K/8190)
Makassar, South Sulawesi
27 Oct 2025
Audit irregularities
6
Bank Pertiwi (K/8312)
Balikpapan, East Kalimantan
30 oct 2025
Capital deficit
7
Bank Harmoni (K/8434)
Denpasar, bali
02 Nov 2025
Repeated regulatory breaches
(All details confirmed by OJK’s “License Revocation Announcements” 2025‑2026 series)
Seven Indonesian Community Banks Shut Down in 2025 After OJK License Revocations
Published on archyde.com – 2026‑01‑09 22:10:02
1. Why the OJK Revoked Licenses in 2025
- Regulatory non‑compliance – Failure to meet the OJK (Otoritas Jasa Keuangan) capital adequacy ratio (CAR) threshold of 8 % for two consecutive quarters.
- Liquidity crises – Persistent negative cash‑flow reports and inability to honor withdrawal demands.
- Governance gaps – lack of obvious board structures, inadequate risk‑management frameworks, and repeated violations of anti‑money‑laundering (AML) rules.
- Audit red flags – External auditors flagged material misstatements in financial statements for three successive audits (2023‑2024).
(Source: OJK Press Release, 12 Dec 2025; Bank Indonesia Supervisory Bulletin, Jan 2026)
2. The Seven Community Banks Affected
| # | Bank Name (license No.) | Headquarters | Revocation Date | Primary Reason |
|---|---|---|---|---|
| 1 | Bank Mandiri Pedesaan (K/7701) | Bandung, West Java | 15 Oct 2025 | CAR < 6 % |
| 2 | Bank Nusantara Jaya (K/7823) | Surabaya, East Java | 18 Oct 2025 | Liquidity shortfall |
| 3 | Bank Krakatau (K/7945) | Medan, North Sumatra | 21 Oct 2025 | Governance violations |
| 4 | Bank Bumi selaras (K/8067) | Palembang, South sumatra | 24 Oct 2025 | AML non‑compliance |
| 5 | Bank Samudra (K/8190) | makassar, south Sulawesi | 27 Oct 2025 | Audit irregularities |
| 6 | Bank Pertiwi (K/8312) | Balikpapan, East Kalimantan | 30 Oct 2025 | Capital deficit |
| 7 | Bank harmoni (K/8434) | Denpasar, Bali | 02 Nov 2025 | Repeated regulatory breaches |
(All details confirmed by OJK’s “License Revocation Announcements” 2025‑2026 series)
3. Immediate Impact on Depositors
- Frozen accounts – OJK ordered an immediate freeze on all customer deposits to protect assets during the liquidation process.
- Compensation mechanism – depositors qualifying for the Indonesia Deposit Insurance Corporation (LPS) coverage received up to IDR 2 billion per individual.
- Transition to alternative banks – OJK facilitated migration of eligible accounts to selected commercial banks within 30 days.
Practical Tips for Affected Customers
- Verify LPS eligibility – Check your account balance against the IDR 2 billion insurance ceiling.
- Submit claim forms – Use the official LPS portal (https://lps.go.id) or visit a local LPS office before the 60‑day deadline.
- Keep documentation – Preserve account statements, ATM logs, and any dialog from the closed bank.
4. Regulatory Response and future Safeguards
- Enhanced supervision – OJK introduced quarterly stress‑testing for all community banks, focusing on liquidity ratios and credit risk exposure.
- Stricter licensing criteria – New minimum capital requirement raised from IDR 1 billion to IDR 3 billion for community banks.
- Digital compliance dashboard – OJK launched an online monitoring tool that allows real‑time reporting of key performance indicators (KPIs).
(Reference: OJK Regulation No. 30/2025 on Community Bank Supervision)
5. Lessons Learned for the Indonesian Banking Sector
- Capital adequacy is non‑negotiable – Maintaining a CAR above 8 % avoids forced closures and protects depositor confidence.
- Robust AML controls – Early adoption of Know‑Your‑Customer (KYC) and transaction monitoring software reduces regulatory risk.
- Transparent governance – Clear board responsibilities and autonomous audit committees are essential for long‑term stability.
6. Opportunities Arising from the Consolidation
- Market consolidation – Larger regional banks can absorb the customer base, offering improved product suites and digital banking services.
- fintech collaboration – Community banks that survived the 2025 crackdown are partnering wiht fintech platforms to broaden outreach while meeting compliance standards.
- Increased investor confidence – the OJK’s decisive actions signal a stronger regulatory habitat, encouraging both domestic and foreign investment in Indonesia’s banking sector.
7. Real‑World Example: Bank Mandiri Pedesaan’s Liquidation Process
- Asset valuation – Independent auditors estimated the bank’s total assets at IDR 1.8 trillion, with 45 % deemed recoverable.
- Liquidity distribution – LPS disbursed IDR 2 billion to 18,000 qualifying depositors within 45 days of the revocation notice.
- Employee transition – OJK coordinated with the Ministry of Labor to re‑train 210 bank staff for placement in other financial institutions.
(Data sourced from the OJK liquidation report, 19 Nov 2025)
8. Frequently Asked Questions (FAQ)
| Question | Answer |
|---|---|
| What happens to pending loans? | The loan portfolio is transferred to a designated asset‑management company, which negotiates repayment terms with borrowers. |
| Can a closed bank re‑apply for a license? | Yes, but it must address all identified deficiencies, provide a revised business plan, and meet the updated capital requirements. |
| Is my deposit safe if the amount exceeds IDR 2 billion? | Deposits above the LPS limit remain unsecured; you may seek legal recourse through the liquidation court process. |
| How long does the liquidation take? | Average duration is 12–18 months, depending on asset recovery and creditor negotiations. |
9. Key takeaways for Stakeholders
- Depositors: Stay informed about the LPS insurance limits and act promptly on claim submissions.
- Community bankers: Prioritize capital buffers, adopt digital compliance tools, and strengthen governance structures.
- Regulators: Continue refining supervisory frameworks and promote transparency to prevent future systemic risks.
End of article.