OJK Extends Credit Restructuring Policy Until March 2024

Translator

Ririe Ranggasari

28 November 2022 23:26 WIB

TEMPO.CO, Jakarta - The Financial Services Authority (OJK) has officially extended the credit restructuring policy until March 31, 2024. The regulator said that this decision was based on the high uncertainty of the global economy, which has risen normalization of global economic policies by the US Central Bank (The Fed), volatile geopolitics, and high inflation rates.

"OJK has adopted a policy to support targeted segments, sectors, industries and regions that require an additional credit/financing restructuring period for one year until March 31, 2024," OJK said in an official statement, Monday, November 28, 2022.

On the other hand, the national economic recovery continues, in line with Indonesia's improving control over the pandemic and the normalization of people's economic activities. Most of Indonesia's sectors and industries have returned to strong growth.

However, based on the OJK's in-depth analysis, a number of exceptions were found due to the scarring effect of the Covid-19 pandemic.

Sectors that are eligible to get an extension of credit restructuring are:

  1. The MSME segment, which covers all sectors;
  2. Sector that provides accommodation and food and beverages
  3. Industries that provide large employment opportunities, which are textiles and textile products (TPT) and footwear.

This policy is carried out in an integrated manner and applies to banks and finance companies. Meanwhile, existing and comprehensive policies on credit or financing restructuring in the context of Covid-19 pandemic remain valid until March 2023.

In its explanation, OJK stated that financial services institutions (LJK) and business actors who still need the policy can use it until March 2023. The policy will also remain in effect until the end of the credit/financing agreement between the lenders and the debtors.

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