Banks Liquidated in 2022 Not Showing Healthy Economic Recovery: LPS

Every year, at least 6-7 BPRs (local banks) are liquidated, but this year we recorded zero (bank liquidations), which means the situation is improving…

JAKARTA (Antara) – The Indonesian Deposit Insurance Corporation (LPS) has confirmed that it has not liquidated a bank in 2022. This indicates that the country’s economic recovery is progressing and the banking sector is healthy.

“At least 6-7 BPRs (local banks) are liquidated each year, but this year we recorded zero (bank liquidations), which means the situation is improving. BPR only, BPDs (local banks) are not counted.Purbaya Yudhi Sadewa, Chief of Commissioner’s Committee of LPS, said at a press conference at the IDIC International Seminar in Bali on Wednesday: says.

The LPS has predicted that at least eight rural banks will be liquidated this year, and he said the improvement in the domestic banking sector amid the post-COVID-19 economic recovery is preventing this forecast from coming to fruition. clarified.

“Appropriate policies have been put in place by the KSSK (Financial System Stability Committee). System policies are adequate and the economy is growing above 5.7%,” said an LPS official.

With regard to high-risk lending (LAR) recorded in some regions, such as Bali, which recorded 71% of total lending of Rp8 trillion, he said the situation will improve as the national economy begins to recover. From the pandemic that expressed hope that.

“Bali’s economy, especially the tourism sector, has been nearly wiped out[duetotheCOVID-19pandemic]but tourism in Bali has resumed over the past two months,” Sadhewa said.

Various international events in the island states, such as the G20 summit, are expected to boost economic recovery, which could lead to a gradual decline in the state’s LAR, he said.

“LPS has not liquidated any bank in Bali. There have been some banks that have actually gotten into trouble, but they are the old banks and there are no such cases with the new banks,” he said. added.

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