Students from the Faculty of Economics and Business (FEB), Universitas Sebelas Maret (UNS), take part in a guest lecture delivered by the Indonesia Deposit Insurance Corporation (LPS) on Wednesday, October 16, 2024, at the Soedarah Soepono Hall. This activity was part of the implementation of a collaboration agreement between FEB UNS and LPS.

The guest lecture was attended by over 100 undergraduate students from the Management and Development Economics programs. The session featured Daly Rustamblin, Director of the Bank Liquidation Group, as the keynote speaker, focusing on the theme of Bank Liquidation. The lecture is expected to help students understand the fundamental philosophy (mindset) and acquire the conceptual and practical skills (skill set) related to bank liquidation.

At the beginning of his presentation, Daly outlined the four options for bank resolution available to LPS under Indonesian law: Purchase & Assumption (P&A), Bridge Bank, Temporary Capital Injection, and Liquidation.

In a Purchase & Assumption (P&A) approach, good assets are transferred to the acquiring bank, while bad assets are liquidated. Further, a Bridge Bank option involves establishment of a temporary bank to manage good assets, while bad assets are liquidated. In a Temporary Capital Injection, capital is provided to address the bank’s capital shortfall, ensuring compliance with the required capital adequacy ratio. Meanwhile, Liquidation involves converting all assets into cash to fulfill the bank’s obligations.

Daly emphasized that Bank Liquidation refers to resolving all assets and liabilities of a bank following the revocation of its operating license and the dissolution of its legal entity. He explained that the legal basis for bank liquidation is outlined in the LPS Law and further detailed in LPS Regulation No. 1/PLPS/2011 on Bank Liquidation, as last amended by Regulation No. 1 of 2022.

Since LPS began operations in 2005, up to September 20, 2024, 137 banks (comprising 1 Commercial Bank, 122 Rural Banks (BPR), and 13 Sharia Rural Banks (BPRS)) have undergone liquidation. Currently, 19 BPR/BPRS are in the liquidation process, while 118 banks have completed liquidation (1 Commercial Bank, 106 BPR, and 11 BPRS).

Daly elaborated further that an end-to-end liquidation process, which involves 17 stages can be grouped into three main phases: Planning, Implementation, and Closure of Liquidation. Following his presentation, students actively participated in a discussion session, engaging with the speaker to deepen their understanding of the topic