La Nyalla Supports OJK's Plan To Eliminate Bad Loans For MSMEs

JAKARTA - Chairman of DPD AA La Nyalla Mahmud Mattalitti supports the Financial Services Authority (OJK) which is reviewing the write-off of credit for micro, small and medium enterprises (MSMEs) under IDR 5 billion. According to La Nyalla, UMKM players will be greatly helped by this policy.

The senator from East Java has voiced relief for bad credit for MSME players since long ago.

"I have even written to President Joko Widodo (Jokowi) in January 2021, especially for MSMEs who experience bad credit due to disasters," said La Nyalla, Monday, May 5.

The public raised the issue of bad credit when La Nyalla made a working visit to Palu City, Central Sulawesi, some time ago.

At that time, La Nyalla received aspirations regarding the number of disaster victims who experienced bank blacklist status due to failure to pay loans or non-performing loans (NPLs). As is known in 2018, Central Sulawesi was hit by an earthquake and tsunami which affected many sectors.

"Whereas on average they are medium and small entrepreneurs. So that it is impossible to get capital loan assistance for recovery. Until now, not a few MSME players have not been able to get up. For this reason, please get the attention of the Minister of Finance and related institutions, so they can re-start a business to improve life, "said La Nyalla.

He also appreciated the OJK for considering the elimination of NPL loans below Rp 5 billion from industries that want to play an active role in developing the MSME business with a target of above 30% by 2024.

"If realized, I think it can help the national economic recovery program (PEN), which is an important key in dealing with the impact of the COVID pandemic," he explained.

La Nyalla hopes that the OJK plan will receive a green light from various related agencies and ministries. It is known, currently the OJK is preparing a strategy regarding the study of this bad credit elimination plan.

"The government really needs to think about financing UMKM to people who have the potential for UMKM businesses. How about improving their business, from the impact of the disaster and the impact of the pandemic. So there must be assistance," said La Nyalla.