OJK Accelerates Digital Transformation of BPR and BPRS
The
Financial Services Authority (OJK) seeks to accelerate Rural Banks (BPR) and
Sharia BPR (BPRS) to carry out digital transformation. This aims to improve
competitiveness, encourage product innovation, and increase collaboration with
other institutions.
OJK
Banking Supervisor Executive Head Dian Ediana Rae said the trend of
collaboration and joint development between BPRS and financial technology
(fintech) in recent years has created new expectations for BPRS to participate
in the digital transformation era.
"OJK
will accelerate the digital transformation of BPR and BPRS, which is explicit.
OJK is committed to accelerating BPR and BPRS to carry out this digital
transformation," he said during the BPRS Digital Transformation Forward
Direction webinar in Indonesia, Thursday (6/30/2022).
According
to him, the service innovation is intended to increase the ability of BPRS to
reach, provide, manage and distribute financing for UMKM in various regions
through the ease of technology. As a regulator, OJK also encourages BPR/BPRS to
enter the digital-based payment system ecosystem and raise funds in the capital
market through public offerings.
"In
line with the 2021-2025 banking development roadmap in Indonesia, including BPR
and BPRS," he said.
The
direction of BPR and BPRS development in the roadmap prepared by OJK
specifically prioritizes various forms of support and encouragement for the
creation of competitive advantages and acceleration of digital transformation,
so it is important that all elements in the BPR and BPRS industry and all
strategic partners together make BPR and BPRS more agile, adaptive,
contributive and resilience in providing financial access to UMKM actors and
communities in the region or region.
"In
preparing the road map for the development of BPR and BPRS, we expect BPR and
BPRS to become more agile, flexible, adaptive, and resilient institutions both
in terms of institutions and contributions in the development of UMKM in their
respective regions," he said.
In
the BPR and BPRS development roadmap, OJK also has aspects of strengthening
regulations, licensing, and supervision. He pointed out that licensing for new
BPR and BPRS products will be made easier based on self-assessment.
"The
name of the business will not be risk-free, but I think the most important
thing is that individually before issuing certain products, banks can already
assess their own potential risks," he said.
In
early 2021, the Banking Research and Regulation Department of the Financial
Services Authority (OJK) has issued the BPR and Fintech Lending Cooperation
Guidelines with the aim of becoming a common reference in building
collaboration between the two, and can certainly be used in understanding
institutional, legal, technological and other aspects to achieve optimal end
results to continue to compete.
Apart
from these guidelines, OJK as the supervisor of BPR / BPRS issued the Financial
Services Authority Regulation (POJK) Number 25/03/2021 concerning the
Implementation of BPR / BPRS Products. The new regulation aims to provide a foundation
and guarantee of legal certainty for BPR / BPRS to achieve a level playing
field in the financial services industry going forward. For some parties, POJK
25 is considered accommodating, so that it can increase business competition
and service levels of each BPR / BPRS. BPR and BPRS are no longer assessed by
the BPRKU (BPR Based on Business Activities) classification but are given the
same opportunity depending on capital adequacy, assessment method, and risk
management implementation.
In
September 2021, the total assets of BPR and BPRS were able to grow 8.90 percent
yoy, lending grew 4.33 percent YoY, and third party funds (DPK) grew 11.27
percent yoy.
Source : https://www.republika.co.id
