LPS explores investor relations scheme to rescue troubled BPR/BPRS

Bandarlampung (ANTARA) - The Indonesia Deposit Insurance Corporation (LPS) is exploring an investor relations scheme to rescue troubled rural banks (BPR) and Sharia rural banks (BPRS).

LPS Board of Commissioners Chairman Anggito Abimanyu explained that the institution has received a new mandate to take intervention measures to minimise bank losses beyond mere liquidation.

“So, it is not just about liquidation; we will also create a sort of investor relations programme where we offer troubled banks to see if there are investors willing to purchase them,” Anggito told reporters during the Lampung Financial Festival (Finfest) 2027 in Bandarlampung on Saturday.

“Since we know the permits and capital are already in place, but perhaps the governance is poor or the capital is insufficient, we will attempt to offer them to interested investors,” he added.

So far, he noted, no investors have shown interest in taking over the assets of these BPR/BPRs. He declined to disclose the names of the specific banks involved.

However, Anggito revealed that the offer is not only targeting new investors but also existing investors and regional development banks (BPD) with sufficiently strong capital.

“We do not necessarily have to look for new investors, but also existing ones. There may be those interested in acquisitions or mergers, including regional banks. We are also offering BPR/BPRS owned by local governments, regencies, and cities to BPDs. It is better if they can be acquired by BPDs that possess strong capital and stability,” he said.

Throughout the first half of 2026, LPS has completed the liquidation of seven BPR/BPRS, while 18 others are still in the liquidation process, with an average completion time of approximately 21 months, Anggito stated.

During the same period, Anggito revealed that eight BPR/BPRS had been decided for liquidation, with total eligible deposits reaching IDR 1.6 trillion, covering 48,733 accounts.

From the results of these liquidations, the value of deposits within the guarantee coverage (up to IDR 2 billion) amounted to IDR 412.20 billion.