OJK Issues Regulation to Strengthen BPR Capital and Competitiveness

The Financial Services Authority (OJK) has issued OJK Regulation (POJK) Number 7 of 2026 as an effort to encourage the rural bank (BPR) industry to improve competitiveness through capital strengthening. With strong capital, BPRs are expected to achieve economies of scale in facing increasingly tough challenges and competition. “Through strong capital, BPRs are expected to enhance their competitiveness, perform their intermediary function well, and absorb risks arising from their operational activities,” said OJK Chief Executive of Banking Supervision Dian Ediana Rae in a statement in Jakarta on Friday. POJK Number 7 of 2026 concerning the Minimum Capital Requirement and Fulfilment of Minimum Core Capital for BPRs will take effect on 30 June 2026. This POJK is a refinement of the previous regulation governing capital, namely POJK Number 5/POJK.03/2015. POJK 7/2026 also aligns with several current regulatory provisions and accounting standards applicable to BPRs, including POJK Number 7 of 2024 concerning BPRs and Sharia BPRs, POJK Number 1 of 2024 concerning Asset Quality of BPRs, and SEOJK Number 21 of 2024 concerning Accounting Guidelines for BPRs. This regulation stipulates the fulfilment of minimum core capital through additional paid-in capital or donated capital in the form of fixed assets, specifically land and buildings, under certain conditions. Furthermore, POJK 7/2026 provides relaxation on the deadline for completing administrative requirements for paid-in capital fulfilment, as well as adjustments to capital components, including the reclassification of fixed asset revaluation surplus as a core capital component. In order to encourage enforcement of the minimum core capital requirement for BPRs, this regulation also refines sanctions for BPRs that violate the obligation to meet the minimum core capital.