East Java OJK liduidates three BPR so far this year

REPUBLIKA.CO.ID, SURABAYA -- The East Java office of the Financial Service Authority (OJK) has liquidated three people's credit banks (BPR) so far this year.

Head of the East Java OJK Sukamto said three BPRs were BPR Iswara Arta in the regency of Sidoarjo, BPR Syariah Al Hidayah in Pasuruan, and BPR Kudamas Santosa in Porong, Sidoarjo.

"Altogether there are 1,600 units of BPR in Indonesia, and only 4 percent of were liquidated so far this year," Sukamto said here on Saturday.

He said the main cause of the liquidation was high non performing credits that they could not be salvaged.

Last year, 70 units of BPR and one general bank were liquidated, he said.

The Deposit Insurance Agency (LPS) would guarantee compensation for the funds of depositors at the liquidated banks.