OJK Extension Of Credit And Financing Restructuring Until 2024, This Is A Sector That Can Be Relief

Illustration (Photo: Doc. Antara)

JAKARTA - The Financial Services Authority (OJK) has decided to extend credit/financing restructuring for a year until March 31, 2024, from the previous only until March 31, 2022.

OJK Director of Public Relations Darmansyah said this decision was based on the assessment of the current global economic uncertainty which remains high.

He also revealed several other factors, such as the normalization of global economic policy by the US Central Bank (the Fed), uncertainty of geopolitical conditions, and a high inflation rate.

"The slowdown in world economic growth in the future is unavoidable as predicted by various international institutions," he said in a written statement on Monday, November 28.

According to Darmansyah, on the other hand, the recovery of the national economy continues as the pandemic is more controlled and normalizing people's economic activities.

He admitted that most of Indonesia's sectors and industries had returned to strong growth.

"Even so, based on in-depth analysis, several exceptions were found due to the prolonged impact of the COVID-19 pandemic or the scarring effect," he said.

Darmansyah explained, this relaxation policy will target several strategic sectors.

First, the MSME sector which covers all segments. Second, the accommodation and food and drink supply sector.

And the third is several industries that provide large jobs, namely the textile and textile product (TPT) industry and the footwear industry.

"This policy is carried out in an integrated and applicable manner for banks and finance companies," he stressed.

Meanwhile, the existing and comprehensive credit/financing restructuring policy in the context of the COVID-19 pandemic is still valid until March 2023.

"Financial Services Institutions (LJK) and business actors who still need this policy can use the said policy until March 2023 and will remain in effect until the end of the credit/financing agreement between LJK and debtors," he added.

Darmansyah ensured that the authorities would continue to observe the development of the global economy and its impact on the national economy, including the intermediation function and stability of the financial system.

He also asked LJK to prepare adequate buffers to mitigate the risks that may arise.

"OJK will also respond proportionally to further developments while still prioritizing financial system stability and maintaining the momentum of national economic recovery," Darmansyah concluded.