Four Indonesian Banks Have Core Capital Above Rp70 Trillion

Indonesian banks are no longer classified based on Bank Umum Kegiatan Usaha (BUKU) I, II, III, and IV since October 2021. The Financial Services Authority (OJK) now uses the Core Capital Group Classification (KBMI).

KBMI is divided into four groups. KBMI 1 comprises banks with core capital less than Rp6 trillion, KBMI 2 has core capital of Rp6 trillion to Rp14 trillion, KBMI 3 for Rp14 trillion to Rp70 trillion, and KBMI 4 for more than Rp70 trillion.

Currently, only four banks are categorized as KBMI 4. These four banks with jumbo core capital are Bank Mandiri, Bank Rakyat Indonesia (BRI), Bank Central Asia (BCA), and Bank Negara Indonesia (BNI).

The change from the BUKU to the KBMI system caused five banks to be downgraded. These five banks are Bank CIMB Niaga, Bank Danamon, PaninBank, Bank Permata, and Bank OCBC NISP.

These five banks are now classified as KBMI 3. In total, there are 13 banks in KBMI 3. Meanwhile, there are 17 banks in KBMI 2 and 73 banks in KBMI 1.

OJK Regulation 12/2020 on bank consolidation mandates that banks must have a minimum core capital of Rp3 trillion by the end of 2022. Currently, 26 commercial banks still meet this criterion.

If they fail to meet the core capital requirement, these banks must close or transform into Rural Banks (BPR). The option of merging banks is also available.