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11 Indonesian banks go bankrupt in 2024: LPS

Jakarta Globe - May 22, 2024

Monique Handa Shafira, Jakarta – The Deposit Insurance Corporation (LPS) has paid out Rp 300 billion in deposit claims to customers of 11 small banks that went bankrupt in 2024.

These claims were settled for customers of 11 rural banks (BPR) liquidated by LPS between January 1 and April 30, 2024.

"I don't recall the exact number of bank accounts, but we've disbursed around Rp 300 billion in deposit insurance for 11 BPRs," said Didik Madiyono, a member of LPS's Board of Commissioners, to Beritasatu.com at the Indonesia Stock Exchange (IDX) on Tuesday.

Didik noted that the average processing time for customer claims was just five days from the date the bank's license was revoked by the Financial Services Authority (OJK). Legally, LPS has up to 90 working days to process these claims.

This swift process is intended to reassure the public, ensuring they continue to trust and engage with BPRs and LPS.

"Some customers expressed their gratitude, as they had been trying to retrieve their savings for nearly six months. Once LPS took over, their funds were returned within five working days," Didik added.

As of May 2024, the OJK had revoked the licenses of 11 BPRs. These include BPR Dananta, BPR Wijaya Kusuma, BPRS Mojo Artho Kota Mojokerto, BPR Usaha Madani Karya Mulia, BPR Pasar Bhakti Sidoarjo, BPR Purworejo, BPR EDC Cash, BPR Aceh Utara, BPR Sembilan Mutiara, BPR Bali Artha Anugrah, and BPRS Saka Dana Mulia.

Source: https://jakartaglobe.id/business/11-indonesian-banks-go-bankrupt-in-2024-lp