OJK Decides To Relax Credit For Longsor Disaster Victims And Sumatra Flash Floods

JAKARTA - The Board of Commissioners of the Financial Services Authority (OJK) has set a policy of granting special treatment for credit or financing of debtors affected by floods and landslides in Aceh, West Sumatra and North Sumatra Provinces.

Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar explained that his party had collected data and assessments in the disaster area which showed that the disaster in question affected the economy in the area and in turn affected the debtor's ability to pay.

"The provision of special treatment is carried out as part of risk mitigation so that disasters do not have a systemic impact, and to support the acceleration of the recovery of economic activity in the area," Mahendra said in an online press conference, Thursday, December 11.

He added that special treatment procedures for bank credit or financing, financing institutions, venture capital companies, micro financial institutions and other financial services institutions given to affected debtors refer to POJK number 19 of 2022 concerning special treatment for financial service institutions in certain regions and sectors in Indonesia affected by disasters or POJK about disasters.

He detailed that special treatment of credit and financing for debtors affected by the disaster includes a ceiling of IDR 1 billion to IDR 10 billion, given an assessment of credit quality and financing based on the accuracy of payments.

"Second, the determination of the quality of smooth credit or restructured financing. Restructuring can be carried out on financing carried out before and after debtors are affected by the impact of the disaster.

"For lender organizers, restructuring can be done after obtaining approval from the funder," explained Mahendra.

Furthermore, the provision of new financing to debtors affected by the determination of credit quality separately for financing credit or the provision of new funds and not implementing one obligor.

"The determination of relaxation is valid within a period of up to 3 years from December 10, 2025," continued Mahendra.