Readiness of People's Economic Banks (BPR) in Implementing SAK EP for Impairment Asset Calculation

Abstract

The objective of this study is to analyze the readiness of rural banks (BPRs) in implementing impairment of asset (CKPN) in accordance with the Financial Accounting Standards for Private Entities (SAK EP), focusing on the dimension of data availability, human resources, information technology, organizational commitment, and policies and procedures. This study uses a mix method with a quantitative approach through distributing questionnaires to 320 BPRs and K-Means Clustering analysis, as well as a qualitative approach through interviews with BPR Directors. The results show that human resources, information technology, and policies and procedures are the most influential factors in the readiness of CKPN implementation in accordance with SAK EP. Some BPRs have attempted to implement CKPN in accordance with SAK EP, but some other BPRs are not ready and require acceleration for their implementation, with the development of human resources, information technology systems, and internal policies.