Business · Companies · 3 hrs ago
Weak governance cited in liquidation of 14 Indonesian rural banks
Indonesia liquidated 14 rural and sharia rural banks between January and October 2026.
The country’s Deposit Insurance Corporation, known as LPS, said weak governance was the main factor behind the closures.
The banks had 62,971 customer accounts eligible for compensation, with claims worth Rp1.9 trillion in total.
LPS said it had paid Rp643.94 billion in claims, with 60% of the amount paid in the first five working days.
The payments are meant to protect eligible depositors when a bank closes.
LPS is also backing a financial regulator’s plan to consolidate rural banks.
The plan aims to strengthen capital, efficiency and risk management, helping banks improve services and expand financing, including for small businesses and regional industries.
Indonesia’s Deposit Insurance Corporation said 14 rural and Islamic rural banks were liquidated from January to October 2026.
The corporation’s chairman, Anggito Abimanyu, cited weak governance as the main factor behind the closures.
The liquidated banks had 62,971 eligible-for-payment deposit accounts, worth Rp1.9 trillion.
The corporation had paid Rp643.94 billion in claims, with 60% of that amount paid in the first five working days.
The corporation said it supported the Financial Services Authority’s program to consolidate rural banks.
- Who
- Indonesia’s Deposit Insurance Corporation reported the liquidations; its chairman, Anggito Abimanyu, cited weak governance.
- What
- Fourteen rural and Islamic rural banks were liquidated.
- When
- From January to October 2026; the figures were reported on November 3, 2026.
- Where
- Indonesia.
- Why
- Weak governance was identified as the main factor behind the closures.
This story does not have two clearly opposing sides.
Fourteen rural and Islamic rural banks were liquidated.
The Deposit Insurance Corporation reported the liquidation figures and said weak governance was the main factor behind the closures.
- Liquidated banks
- 14 rural and Islamic rural banks
- Period
- January–October 2026
- Eligible accounts
- 62,971
- Eligible claims value
- Rp1.9 trillion
- Claims paid
- Rp643.94 billion
What people are saying
The cause of the resolution of rural and Islamic rural banks is weak governance at the rural and Islamic rural banks concerned. There are certainly many other factors, but that is the factor we monitor as the main factor affecting the closure of rural and Islamic rural banks.
We do have an obligation to speed up payment of eligible claims.