OJK Chairman Wimboh Santoso Ensures Credit Restructuring Continues Until March 2022

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Wimboh Santoso confirmed that he would extend the banking credit restructuring program until March 2022. According to him, this policy is intended to ease the burden on debtors who have not recovered from the impact of the COVID-19 pandemic while maintaining the performance and stability of the financial sector.

"In the event of repeated restructuring during the relaxation period, the debtor is not subject to unnatural or excessive fees," he said in an online meeting of the Financial System Stability Committee (KSSK), Monday, January 1.

In his notes, currently the restructuring of bank credit has reached IDR971 trillion, equivalent to 18 percent of total credit. This facility has been provided to approximately 7.6 million SME and corporate debtors.

Meanwhile, the additional time policy is also given for financing restructuring in finance companies or leasing until January 25, 2021.

"The finance company has restructured its customers worth IDR191.58 trillion from the 5 million contracts that have been approved," he said.

On this occasion, Wimboh also reported that the stability of the financial services sector until January 2021 was recorded to be still in a maintained condition. However, the authorities view that several indicators of intermediation in the financial services sector still have to spur business in order to accelerate the recovery process.

"Several indicators of financial service sector intermediation have posted positive performance and the risk profile for the financial services industry remains under control," he said.