Abstract
The financial services authority (OJK) released data, in all of Indonesia half of the existing rural bank/Islamic rural banks have not met the minimum capital according to the Financial Services Authority Regulation (POJK) No.5/POJK.03 / 2015, which is IDR 3 billion and IDR 6 billion according to the size of their business so far, until December 31, 2019. Of course, with the data released by the OJK, many rural bank/Islamic rural banks will be forced to stop their operations. This research aims to analyze the role of POJK in supporting the sustainability of rural bank/Islamic rural banks. This research was carried out through the following stages: 1) the researcher conducted in-depth interviews with informants with a questionnaire guide; 2) to support the results of the interview, a literature study was also conducted, especially regarding regulations related to marketing products / services; 3) from the results of the interview tabulations are made to make it easier to read the results of the interviews, 4) discuss the tabulated data so that the condition of the rural bank/Islamic rural banks can be seen, 5) make conclusions. The results of this research found that rural bank/Islamic rural banks with a fund of Rp.500,000,000, - for the time being unable to cover the risk that must be borne by rural bank/Islamic rural banks, it is necessary to have a POJK which regulates the minimum core capital. POJK is also very much needed so that rural bank/Islamic rural banks can run their business more efficiently, effectively, transparently and accountably and be able to compete fairly with other financial institutions.
 Keywords : POJK, rural bank/Islamic rural banks sustainability
Highlights
OJK announced the data that there are at least 722 rural bank/Islamic rural banks across Indonesia that are threatened with sanctions in the form of restrictions on their business activities in 2020
This regulation resulted in one BPR (Panca Marga) and One rural bank/Islamic rural banks (Jabal Tsur) forced to close due to the capital adequacy ratio below provisions rural bank/Islamic rural banks are required to make changes in order to adapt to the POJK and compete with other institutions engaged in finance, which are starting to lose their market share, this is the impact of the increasing number of institutions standing everywhere
The methods used in data collection are: 1) Contacting informants (OJK; rural banks commissioners and rural banks President Director); 2) Arranging instruments; 3) Extracting field data through interviews, with a list of questions to make it more focused; 4) To refine the results of the interview, a literature study was carried out, especially regarding the Laws and POJKs related to products/services and marketing; 5) Data editing for analysis; 6) Tabulation of data; 7) data analysis; 8) Discussion; 9) Conclusions and Recommendations
Summary
OJK announced the data that there are at least 722 rural bank/Islamic rural banks across Indonesia that are threatened with sanctions in the form of restrictions on their business activities in 2020. The POJK stipulates that Rural bank/Islamic rural banks are required to meet core capital of IDR 3 billion and IDR 6 billion by the end of 2019 at the latest. This regulation resulted in one BPR (Panca Marga) and One rural bank/Islamic rural banks (Jabal Tsur) forced to close due to the capital adequacy ratio below provisions rural bank/Islamic rural banks are required to make changes in order to adapt to the POJK and compete with other institutions engaged in finance, which are starting to lose their market share, this is the impact of the increasing number of institutions standing everywhere. This condition is less of a serious concern from both the government and banking institutions, even though such practices can harm banks and teach the public unfavorable
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