The fluctuating Covid-19 has caused the Financial Services Authority (OJK) to extend the restructuring for the next year. This policy will be in effect until March 31, 2024.
OJK, in an official statement, Monday (28/11/2022), explained, “OJK adopts a policy of supporting certain (targeted) segments, sectors, industries, and regions that require an additional credit/financing restructuring period of 1 year until 31 March 2024”
OJK also ensures that this policy is carried out in an integrated manner and applies to banks and finance companies. Meanwhile, the existing and comprehensive credit/financing restructuring policy in the framework of the Covid-19 pandemic will still be in effect until March 2023.
Financial Services Institutions (LJK) and business actors who still need this policy, can use the policy in question until March 2023, and will remain in effect until the end of the credit/financing agreement between the LJK and the debtor.
OJK will continue to monitor developments in the global economy and their impact on the national economy, including the intermediary function and financial system stability. In this regard, OJK continues to request that FSI prepare adequate buffers to mitigate risks that may arise.
Furthermore, OJK will respond proportionately to further developments while prioritizing financial system stability and maintaining the momentum of national economic recovery.
They assess that current global economic uncertainty remains high, mainly due to the normalization of global economic policies by the US Central Bank (the Fed), uncertain geopolitical conditions, and high inflation rates.
The slowdown in world economic growth in the future is inevitable, as predicted by various international institutions. On the other hand, the recovery of the national economy continues in line with the more controlled pandemic and the normalization of people’s economic activities.
Most of Indonesia’s sectors and industries have returned to strong growth. However, based on an in-depth analysis, several exceptions were found due to the prolonged impact of the Covid-19 pandemic (scarring effect).
The segments eligible for the restructuring extension have the following criteria:
- The MSME segment covers all sectors;
- The accommodation and food and drink provision sector;
- Several industries provide large employment opportunities, namely the textile and textile product (TPT) industry, and the footwear industry.