OJK Asks Financial Industry Actors To Care For The End Of Countercyclical Policy

Chairman of the OJK Board of Commissioners Mehendra Siregar (central) during a working meeting with Commission XI of the DPR (Photo: Capture a screenshot of Commission XI's Youtube)

Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar conveyed an appeal to business actors in the financial industry sector to increase caution in their activities amidst the uncertainty of the current situation. This was conveyed by Mahendra when attending a working meeting with Commission XI of the DPR today.

"Business actors need to be aware of the risk of uncertainty in global economic conditions, the impact of which will certainly be felt by the national economy," he said at the Senayan Parliament Complex, Jakarta on Monday, November 28.

According to Mahendra, the financial industry sector has the potential to receive stronger pressure in line with the government's steps to restore fiscal instruments through a deficit below 3 percent starting in 2023.

"In addition, it is also necessary to anticipate the potential impacts incurred ahead of the end of the implementation of countercyclical policies, especially in the financial services sector," he said.

For information, the countercyclical fiscal policy is a state financial strategy to cut tax levies from the public and the business world.

On the other hand, the government is increasing the portion of spending to support the economy when the situation is experiencing pressure, such as when the COVID-19 pandemic occurs.

Furthermore, the APBN in accordance with Law Number 2 of 2020 is required to return to normal deficit rules below 3 percent of gross domestic product (GDP) after previously being widened to more than 5 percent since 2020.

However, OJK has decided to extend credit/financing restructuring for a year until March 31, 2024, from the previous only until March 31, 2022.

Meanwhile, the three sectors that receive this facility are MSMEs which cover all segments, the accommodation and food and drink supply sector, and several industries that provide large jobs, namely the textile and textile product (TPT) industry and the footwear industry.