The Relationship between the Valuation of Productive Assets and the Establishment of Provisions for the Elimination of Productive Assets with POJK 33 of 2018 at PT BPRS Puduarta Insani for the 2021-2023 Period

Mulia Syahputri (Universitas Islam Negri Sumatera Utara, Medan, Indonesia)
Muhammad Syahbudi (Universitas Islam Negri Sumatera Utara, Medan, Indonesia)
Hendra Harmain (Universitas Islam Negri Sumatera Utara, Medan, Indonesia)

JHSS (Journal of Humanities and Social Studies)
Vol. 10 No. 01 (2026): JHSS (Journal of Humanities and Social Studies) (SI)

Islamic Rural Banks (Bank Pembiayaan Rakyat Syariah or BPRS) play an essential role in maintaining financial stability by applying prudential principles in managing productive assets. One key aspect of this practice is the assessment of asset quality and the establishment of the Allowance for Earning Asset Losses (PPAP) to anticipate financing risks, as regulated in Financial Services Authority Regulation (POJK) NO. 33/pojk.03/2018. This study aims to analyze the conformity of productive asset assessment and PPAP formation with POJK 33/2018 at PT BPRS Puduarta Insani, and to examine its implementation based on the Productive Asset Assessment (SPA) theory. The analysis shows that the non-performing financing (NPF) ratio at pt bprs puduarta insani reached 37%, indicating a high level of financing risk that underscores the importance of proper PPAP formation and the application of prudential principles to preserve asset quality and financial stability.