OJK approves merger of BPR group in Bali-NTB to strengthen capital and efficiency

The Financial Services Authority (OJK) has approved the merger of the Nusamba Rural Bank (BPR) group, which operates across Bali, with a BPR in West Nusa Tenggara (NTB), in an effort to strengthen capital and operational efficiency.

“This move is intended to strengthen corporate governance and increase the competitiveness of BPRs,” stated the Head of OJK Bali, Parjiman, during the handover of the OJK Board of Commissioners’ Decree regarding the banking merger in Denpasar on Tuesday.

The merger involves Nusamba Kubutambahan in Buleleng Regency, Nusamba Tegallalang in Gianyar Regency, Nusamba Manggis in Karangasem Regency, and BPR Mitra Harmoni Mataram in Lombok, NTB, all of which will be merged into BPR Nusamba Mengwi in Badung Regency, Bali.

Following the merger, total assets will amount to Rp799.3 billion, with credit and third-party funds (DPK) reaching Rp462.7 billion and Rp698 billion, respectively.

The financial services regulator emphasised that the merger process underwent a comprehensive assessment, covering bank health, the feasibility of integration plans, adherence to prudential principles, and compliance with applicable regulations.

OJK also ensured that the merger would not disrupt services to customers, as all customer rights and obligations remain protected, and the operational activities of the merged BPR will continue as normal.

With this merger, the total number of BPRs and BPR Syariah (Sharia Rural Banks) in Bali Province as of May 2024 is recorded at 121 BPRs and one BPR Syariah.

“This step is expected to create BPRs that are healthier, stronger, more competitive, and more adaptive to the evolving dynamics of the financial services industry,” he added.