OJK Approves Merger of Two Banks in Yogyakarta

The Financial Services Authority (OJK) has given the green light for the consolidation of two Rural Banks (BPR). The two banks merging are PT Bank Perekonomian Rakyat Artha Mlatiindah into PT Bank Perekonomian Rakyat Artha Mertoyudan. This consolidation action is part of the implementation of the mandate of Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector. The approval for the merger is set out in the Decree of the Member of the Board of Commissioners of the Financial Services Authority No. KEP-25/D.03/2026 dated 13 March 2026 on the Granting of Permission for the Merger of PT Bank Perekonomian Rakyat Artha Mlatiindah into PT Bank Perekonomian Rakyat Artha Mertoyudan. The decree was handed over to each BPR at the OJK Special Region of Yogyakarta Office on 26 March 2026 and at the OJK Central Java Province Office on 1 April 2026. Head of OJK Central Java Province Hidayat Prabowo in Semarang on Tuesday emphasised that BPR consolidation is a strategic step to strengthen institutional resilience and support the increased role of BPR in serving the community and financing productive sectors. “This merger is part of OJK’s efforts to strengthen the BPR industry to make it increasingly healthy, resilient, and capable of facing evolving business dynamics. With stronger capital structure and better institutional capacity, BPR is expected to improve service quality to the community and expand its contribution in supporting SME financing and the regional economy,” said Hidayat in his statement on Tuesday (14/4/2026). This merger is expected to strengthen the institutional capacity and performance of PT BPR Artha Mertoyudan, including expanding service reach, increasing operational efficiency, and strengthening the implementation of good corporate governance. OJK will continue to conduct supervision and guidance on the post-merger integration process to ensure all stages proceed in accordance with applicable regulations while prioritising prudence and consumer protection principles. Through this step, OJK hopes the BPR industry will become stronger, healthier, and more competitive, thereby able to provide greater contribution in supporting SME financing as well as regional and national economic growth.