OJK Emphasises that Consolidation of KBMI I Banks is Not a Hasty Policy

Jakarta (ANTARA) - The Financial Services Authority (OJK) has emphasised that the strengthening of fundamentals and consolidation of banks in the Core Capital-Based Bank Group (KBMI) I category is not a hasty policy, but rather a gradual and measured strengthening process.

The direction of this policy also prioritises dialogue with the industry and is oriented towards creating a stronger, more efficient, innovative banking sector capable of providing better services to the public while maintaining financial system stability and customer protection.

“It should be conveyed that the strengthening of fundamentals and consolidation of KBMI I banks at this time is in the form of recommendations and will be evaluated periodically to assess the level of success,” said the Executive Head of Banking Supervision at OJK, Dian Ediana Rae, in a written response in Jakarta on Thursday.

For context, OJK currently categorises banks into four groups. KBMI I consists of banks with core capital up to Rp6 trillion, the lowest compared to the other groups.

This considers the dynamics of information technology development, the acceleration of banking digitalisation, uncertainty in global economic conditions, and the increasing risk of cyber attacks.

Dian stated that the recommendations for strengthening fundamentals and consolidation have been conveyed by OJK to KBMI I banks at the end of October 2025.

OJK urges each KBMI I bank to conduct a comprehensive and ongoing evaluation of business performance, capitalisation, asset quality, governance, business models, and long-term prospects, including identifying options for capital strengthening and consolidation opportunities that suit each bank’s characteristics.