Bank Indonesia closes down 6 BPR.
Bank Indonesia, revoked the license of six "People's
Credit Banks (BPR) in 2004. The main reasons for the revocation is
mismanagement in addition to problem over capital adequacy ratio (CAR),
a central bank director Irman Djaja Dalimi said. The 6 banks including
two in Jakarta, one in Yogyakarta, one in Semarang, one in Surabaya and
one in Kupang, brought the number of BPR closed down to 312 units since
1987, Dalimi said. Meanwhile, the central bank extended principle
licenses to 34 new units and license to 34 other units of BPR. The
interest is high in opening BPRs, he said, pointing out in 2004 there
were 142 applications for license submitted to the central bank. By
September, 2004, BPR units in the country had assets valued at Rp 15.4
trillion (US$1.7 billion) altogether or an increase of 33.5% in a year.