OJK shuts BPR Pasarraya Kuta; LPS targets deposit review by late January

Denpasar — Indonesia’s Financial Services Authority (OJK) has revoked the business licence of PT Bank Perekonomian Rakyat (BPR) Pasarraya Kuta in Badung, Bali, effective 17 September 2026, triggering liquidation proceedings and deposit guarantee payments by the Deposit Insurance Corporation (LPS). LPS has begun reconciling and verifying customer deposit data, with the process targeted to be completed within 90 working days, or by 26 January 2027.

The licence revocation was set out in OJK Board of Commissioners Decree No. KEP-71/D.03/2026 dated 17 September 2026. Authorities said the measure was taken after the bank’s management and shareholders failed to resolve capital and liquidity problems within the prescribed time frame.

Following the revocation, LPS determined that BPR Pasarraya Kuta would be handled through liquidation under an LPS Board of Commissioners decision issued on 10 September 2026. LPS will carry out its deposit guarantee and liquidation functions pursuant to the Deposit Insurance Corporation Law and its latest amendments.

Deposit verification and payments

According to LPS communications cited in local media, the agency is conducting reconciliation and verification of deposit records and other information to determine which customer savings qualify for payment under the deposit guarantee. The data-matching process is targeted for completion within a maximum of 90 working days from the licence revocation date, ending on 26 January 2027.

LPS has stated that payments to customers will be made in stages during this period using LPS funds for deposits that meet the guarantee conditions. Customers can check the status of their guaranteed deposits at the BPR Pasarraya Kuta office in Badung or through official LPS information channels.

In a public statement, LPS urged customers to remain calm and assured that eligible deposits would be paid in accordance with applicable regulations. LPS has also provided contact details for its information centre and online channels for further inquiries.

What depositors should do

LPS advises depositors to follow official notices from the bank’s office and LPS regarding claim procedures and payment schedules. Customers are expected to ensure that their personal data and account information can be matched with the bank’s records during the verification process.

Under LPS rules, deposit guarantee eligibility is based on three key criteria often referred to as the “3T” requirements: deposits must be properly recorded in the bank’s books, the interest rate must not exceed the applicable LPS guarantee rate, and the customer must not have been involved in a criminal act that harms the bank.

LPS and OJK have reminded borrowers that licence revocation and liquidation do not cancel loan obligations. Loan instalments and other repayments remain due and are to be paid through arrangements coordinated with the LPS liquidation team at the bank’s office.

Key figures and dates

• Licence revocation effective: 17 September 2026.
• LPS resolution decision (liquidation): 10 September 2026.
• Verification target: within 90 working days of licence revocation.
• Stated target completion date for verification: 26 January 2027.
• Payment method: staged payments to eligible depositors using LPS funds.

Wider context

The closure of BPR Pasarraya Kuta adds to the number of rural banks whose business licences have been revoked in Indonesia during 2026. OJK has cited persistent capital shortfalls and liquidity issues, and the inability of shareholders and management to implement effective remediation measures, as key reasons for these actions in the sector.

In the case of BPR Pasarraya Kuta, the bank’s status has shifted from OJK supervision as an operating rural bank to a bank in liquidation under LPS procedures. The immediate priority is the verification of deposit data, followed by staged payments to customers whose claims meet LPS guarantee criteria, while loan collection continues under the supervision of the liquidation team.

Sources

• Kontan - OJK Cabut Izin Usaha BPR Pasarraya Kuta, LPS Lakukan Likuidasi
• VOI (English) - BPR Pasarraya Kuta Permit Cancelled, LPS Starts the Process of Paying Customer Deposits
• detikFinance - Bank di Bali Tutup Gara-gara Kurang Modal
• Bloomberg Technoz - OJK Tutup BPR Pasarraya Kuta di Bali
• Liputan6 - BPR Pasarraya Kuta Ditutup, LPS Pastikan Uang Nasabah Dibayar
• LPS / IDIC announcement via X
• Chatnews - OJK Pencabutan Izin Usaha BPR Pasarraya Kuta Bali
• Warta Ekonomi - OJK BPR Pasarraya Kuta Jadi Bank ke-14 yang Tutup di Sepanjang 2026