BPR Pasarraya Kuta closes in Bali, with insured deposit claims being paid

In brief: Indonesia's Financial Services Authority (OJK) revoked BPR Pasarraya Kuta's banking licence effective September 17, 2026, ending its operations in Kuta, Bali. The Deposit Insurance Corporation (LPS) began paying eligible deposit claims on September 23, while it continues reviewing other accounts.

For customers of this particular rural bank, the immediate questions concern access to deposits and the handling of outstanding loans. The closure applies to BPR Pasarraya Kuta, located at Jalan Raya Tuban No. 62 in Badung Regency; it is not an order shutting down other banks across Bali.

The closure followed a year of supervisory action

OJK's decision, KEP-71/D.03/2026, took effect on September 17. Its public notice states that the bank's offices are closed to the public and its banking activities have ceased. A liquidation process under LPS is now responsible for dealing with the failed bank's assets and liabilities.

The bank had been under a recovery designation since September 4, 2025, when its capital adequacy ratio was below 12%. Its management and shareholders did not deliver sufficient improvements to its capital and liquidity position. OJK placed the institution into resolution on September 2, 2026. LPS subsequently chose liquidation on September 10 and requested the withdrawal of the bank's licence. The September 17 closure was therefore a formal regulatory action, not merely a warning that the bank might close.

Payments are underway, although verification is unfinished

The first insured-deposit payments commenced on September 23 through the appointed paying bank, Bank Mandiri's Kuta branch. LPS had assessed the deposit insurance status of 1,413 customers out of a total of 2,044 at that stage, and set aside approximately Rp17.73 billion for the first round of claims. That allocation should not be confused with evidence that every affected depositor has already received payment.

LPS is reconciling the remaining records and has given January 26, 2027 as the latest date for completing the assessment of deposit eligibility, within 90 working days of the licence revocation. This is a deadline for the verification process, not an unconditional repayment date for every account.

Indonesia's deposit protection is subject to a limit of Rp2 billion per depositor per bank and to eligibility rules. Among the checks are whether the deposit appears in the bank's records, whether the agreed interest rate complied with LPS's insured-rate ceiling, and whether the customer engaged in conduct harmful to the bank. An account balance alone is not enough to establish the sum that will be covered.

Checking a claim does not require a paid intermediary

LPS provides an official account-number lookup for customers to check their deposit insurance status. Payment notices are also made available at the former bank premises. Customers cleared for payment can attend the designated Bank Mandiri Kuta branch with proof of identity and deposit records, such as a savings passbook or deposit certificate; additional supporting documents may be requested. Foreign customers should confirm which identification and account documents will be accepted in their circumstances.

A customer missing from the initial payment list should follow the next official determination rather than assume the claim has been rejected. LPS has also warned customers against people offering, for a fee, to arrange or expedite their compensation. Borrowers still owe their outstanding instalments and must coordinate repayment arrangements with the LPS-appointed liquidation team.

• Indonesia Deposit Insurance Corporation (LPS), “Pengumuman Pembayaran Atas Penetapan Status Penjaminan Simpanan Nasabah Penyimpan PT BPR Pasarraya Kuta (DL)” — September 23, 2026.
• FORTUNE Indonesia, “Jaga Kepercayaan Nasabah, LPS Percepat Pembayaran Klaim BPR” — September 25, 2026.
• ANTARA, “LPS minta nasabah BPR Pasarraya Kuta tenang simpanan pasti dibayar” — September 18, 2026.