The Financial Services Authority (OJK) has officially announced a strategic policy to strengthen the national microbanking industry through a consolidation program. A total of 81 People's Economic Banks (BPR) and Sharia BPRs (BPRS) have received approval to merge into 24 more solid entities. This step is targeted for full completion by June 2026 at the latest.
OJK Executive Head of Banking Supervision, Dian Ediana Rae, revealed that this wave of consolidation does not stop at that number. Currently, the authority is processing more than 200 other BPR merger permit applications. This effort is seen as crucial for increasing competitiveness and operational efficiency of banking at the regional level.
In addition to mergers between BPRs, OJK also continues to encourage collaboration between BPRs/BPRSs owned by regional governments and Regional Development Banks (BPD). This synergy is expected to expand credit access for the micro sector while strengthening banking governance at the local level to support national economic resilience.
As the latest legal basis, OJK has issued OJK Regulation (POJK) Number 7 of 2026, which regulates minimum capital requirement obligations and core capital fulfillment. This regulation provides flexibility for BPRs to meet capital requirements not only through fresh capital injections, but also through the addition of fixed assets such as operational land and buildings, provided the bank's performance is guaranteed to improve.
Dian emphasized that this policy is a concrete step toward creating a more resilient BPR industry in facing market dynamics. Through capital strengthening and tighter supervision, BPRs are expected to function optimally in financial intermediation and be more agile in mitigating operational risks in the future.
