Still Affected By Pandemic, OJK Extends Non-Bank Financial Industry Stimulus Until April 2023

Illustration (Photo: Doc. Antara)

JAKARTA – The Financial Services Authority (OJK) has decided to extend the policy of providing a number of stimulus for the Non-Bank Financial Industry (IKNB) until April 17, 2023. The decision is contained in POJK Number 30/POJK.05/2021 concerning the Second Amendment to the Regulation of the Financial Services Authority Number 14 /POJK.05/2020 which was originally set to expire on April 17, 2022.

OJK Deputy Commissioner for Public Relations and Logistics Anto Prabowo said this step was taken after observing the developments of the Covid 19 pandemic, which is estimated to continue and will have a negative impact on IKNB.

"This policy was also issued as an effort to maintain the momentum for improvement and stability in performance and to avoid potential turmoil at the expiration of the countercyclical policy due to the impact of the spread of COVID-19 for IKNB," he said in an official statement, Friday, January 7.

For information, until December 27, 2021, the total restructuring of financing has reached Rp. 218.95 trillion with the number of contracts that have been approved for as many as 5.22 million restructuring contracts.

The following are the detailed provisions regarding the issuance of POJK Number 30/POJK.05/2021.

a. The deadline for submitting periodic reports submitted by Non-Bank Financial Services Institutions (LJKNB) to OJK and/or announced or published by LJKNB to the public is extended for:

1) Five working days from the expiration of the monthly, quarterly, and semi-annual reporting obligations

2) Ten working days from the deadline for periodic reports submitted on a quarterly basis

3) One month from the expiration date of the annual periodic report obligation

b. Mechanism for the Implementation of the Fit and Proper Assessment:

1) Implementation of presentations or presentations and clarifications in the fit and proper test for prospective NBFI main parties face-to-face at the OJK office or other places determined by OJK or video conference media.

2) OJK may ask prospective NBFI main parties to make presentations or explanations and clarifications through face-to-face meetings at the OJK office or other places determined by OJK under certain conditions.

c. Working capital financing business activities by way of business capital facilities by meeting the following requirements:

1) The financing value for each Debtor is a maximum of IDR 10,000,000,000 (ten billion rupiah)

2) Have collateral in the form of motorized vehicles, land, buildings, and/or heavy equipment (not valid for financing < IDR 50 million)

3) Check the eligibility of the Debtor through a credit information management agency that has obtained a business license from the Financial Services Authority

4) An analysis of the feasibility of the debtor's ability to pay is carried out.

d. Provisions for Employer Pension Fund Actuarial Valuation

In the event that the actuarial valuation results for the period of December 31, 2020 indicate that the employer's pension fund that administers the defined benefit pension program has a third-level funding quality, the employer's pension fund (DPPK) may not carry out an actuarial valuation in 2021, as long as it meets the following criteria:

1) Have a solvency ratio of at least 80% (eighty percent)

2) The proposed additional contribution from the actuarial valuation for the period of December 31, 2020 has been approved to be paid by the founder of the DPPK

3) There is a statement letter from the founder of the DPPK willing to increase funding if necessary so that the DPPK can fulfill all its obligations.

e. Information Technology-Based Lending and Borrowing Service Providers (fintech lending) can facilitate restructuring requests submitted by loan recipients affected by COVID-19

f. The validity period of this POJK is until April 17, 2023, except:

1) Policies related to the deadline for submitting periodic reports

2) Implementation of fit and proper test

3) The insurance company's communication mechanism, which is in effect during the COVID-19 emergency period.