Jakarta – Indonesia’s financial regulator, Otoritas Jasa Keuangan (OJK), has approved the merger of four rural banks (BPRs) in the Priangan Timur region of West Java into PT BPR Nusamba Tanjungsari. The consolidation, formalized in a decision issued on February 20, 2026 (KEP-15/D.03/2026), is part of a broader strategy to strengthen the capital base and competitiveness of rural banks across the country and to bolster credit access for micro, small, and medium-sized enterprises (UMKM).
The four BPRs set to merge are PT BPR Nusamba Sukaraja, PT BPR Nusamba Plered, PT BPR Nusamba Singaparna, and PT BPR Mitra Harmoni Indramayu. PT BPR Nusamba Tanjungsari will serve as the receiving entity in the consolidation. According to OJK Tasikmalaya Head Nofa Hermawati, the entire process adhered to regulatory standards, including thorough assessments of capital adequacy, governance, risk management, and consumer protection.
“This merger is expected to produce a stronger, healthier BPR entity capable of delivering more innovative products and services to enhance public trust,” Hermawati stated during a handover ceremony at the OJK Tasikmalaya office on February 26, 2026. The OJK has assured customers of the merging BPRs that all rights and obligations will be transferred to PT BPR Nusamba Tanjungsari, and that banking transactions and services will continue uninterrupted.
Consolidation as a Key to Strengthening Rural Banking
The move reflects a growing trend within Indonesia’s rural banking sector towards consolidation. The OJK views this as a crucial step in improving efficiency, competitiveness, and resilience, particularly in supporting financing for the vital UMKM sector. This sector is a key driver of economic growth in Indonesia, and access to credit is often a significant challenge for small businesses.
The consolidation isn’t occurring in a vacuum. Data from 2025 indicates a positive trend in the performance of BPRs and BPR Syariah (Islamic rural banks) in the Priangan Timur region. Total assets grew by 3.81% year-on-year to Rp 3.56 trillion. Third-party funds (DPK) increased by 2.71% year-on-year, reaching Rp 2.51 trillion, while credit disbursement saw a growth of 5.62% year-on-year, totaling Rp 2.81 trillion. Importantly, the level of non-performing loans (NPL) remained under control.
Impact on Local Economies and UMKM Financing
The OJK believes that a stronger, more consolidated BPR sector will be better positioned to serve the financial needs of local communities and support the growth of UMKM. By pooling resources and expertise, the merged entity, PT BPR Nusamba Tanjungsari, is expected to offer a wider range of financial products and services tailored to the specific needs of small businesses in the Priangan Timur region.
This consolidation comes at a time when Indonesia is actively seeking to boost economic growth through increased investment in the UMKM sector. The government has launched several initiatives to improve access to finance for small businesses, and the OJK’s efforts to strengthen rural banks are seen as a complementary strategy. The increased capital and improved risk management capabilities of the merged BPR are expected to translate into greater lending capacity for UMKM.
Regulatory Oversight and Future Plans
The OJK has emphasized its commitment to continuing to drive institutional strengthening within the BPR sector through further consolidation and transformation. The regulator aims to create a more sustainable and resilient industry that can make an optimal contribution to both regional and national economies. The agency is actively monitoring the performance of BPRs and providing guidance to encourage further consolidation where appropriate.
The approval of this merger follows a period of increased scrutiny of the BPR sector, with the OJK taking steps to address issues related to governance, risk management, and capital adequacy. In recent months, the OJK has too revoked the licenses of several BPRs that failed to meet regulatory standards, demonstrating its commitment to maintaining the stability and integrity of the financial system. Kontan.co.id reported on the OJK’s approval of the merger.
Looking ahead, the OJK plans to continue its efforts to promote innovation and digitalization within the BPR sector, encouraging the adoption of new technologies to improve efficiency and enhance customer service. The agency also intends to strengthen its supervisory framework to ensure that BPRs are able to effectively manage risks and comply with regulatory requirements.
The successful integration of these four BPRs into PT BPR Nusamba Tanjungsari will be closely watched as a potential model for future consolidation efforts within the Indonesian rural banking sector. The OJK is expected to provide regular updates on the progress of the merger and its impact on the local economy.
Disclaimer: This article provides information about financial regulatory actions and does not constitute financial advice. Readers should consult with a qualified financial advisor before making any investment decisions.
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