OJK Pushes Bali Rural Banks to Accelerate Rp1.48 Trillion in Repossessed Asset Settlements
With rural banks in Bali carrying an 11.27% NPL, the regulator wants faster disposal of repossessed property, including mandatory independent appraisal for collateral above Rp1 billion under POJK 1/2024.
The Financial Services Authority is pressing rural banks (BPR) in Bali to prioritize asset quality repair and accelerate the settlement of repossessed property (AYDA) worth Rp1.48 trillion, with the island's rural banking NPL standing at 11.27 percent, according to regulator data cited in 11 November coverage.
The regulator's directive includes faster independent appraisals for collateral valued above Rp1 billion, as required under POJK 1/2024, and speedier disposal of seized assets that tie up rural bank capital. Rural banks have been encouraged to strengthen collections, reporting discipline and asset disposition pipelines.
The segment matters beyond Bali: Indonesia has thousands of BPRs whose collateral appraisal, auction documentation and asset disposal processes remain paper-heavy, and regulatory pressure on asset quality is rising in parallel with the wider credit policy push announced the same day.