Evaluation of The Implementation of POJK No.4/POJK.03/2015 Concerning The Implementation of Governance for Rural Banks at PT. BPR Dana Multi Guna

Abstract

Good corporate governance or GCG is an important component for all types of businesses, especially rural banks (BPR). The main objective of GCG is to safeguard the interests of stakeholders, increase productivity in the organization, and minimize risks. Financial Services Authority Regulation (POJK) No. 4/POJK.03/2015 concerning the Implementation of Governance for Rural Banks was issued by the Financial Services Authority (OJK) in 2015. The application of GCG principles in BPR, including elements of transparency, accountability, responsibility, independence, and justice, is strictly regulated in this POJK. According to this law, BPR must apply governance principles in every aspect of its business, at every level of the organization. The purpose of this study is to evaluate the extent to which rural banks (BPR) have complied with POJK No. 4/POJK.03/2015, especially related to the duties and obligations of the Board of Directors and Board of Commissioners. The purpose of this study is to collect information about the BPR governance process through interviews with PT. BPR Dana Multi Guna. After that, the data is checked and compared with related regulations to see if they are complied with. The evaluation findings show that PT. BPR Dana Multi Guna has fulfilled all directives of the Financial Services Authority regarding governance as outlined in POJK No. 4/POJK.03/2015. However, the study also reveals that rural banks should be more committed to implementing good governance and raising awareness of it. This is important so that BPR can improve performance, reduce potential risks, and safeguard the interests of stakeholders effectively.