LPPI: Credit Restructuring Can Support Industrial Resilience

President Director of the Indonesian Banking Development Institute (LPPI) Heru Kristiyana. (Photo: Doc. Antara)

JAKARTA - President Director of the Indonesian Banking Development Institute (LPPI) Heru Kristiyana said the extension of credit restructuring through the Decree of the Board of Commissioners of the Financial Services Authority Number 34 of 2022 could support industrial resilience.

"This is a very good policy so that the industry remains strong, both in the bank and non-bank industries. Apart from remaining resilient, the relaxation-given industries or economic sectors will remain strong and support our economy," Heru said in the LPPI webinar The Emergency of Extension of the Credit Restructuring Policy, quoted from Antara, Thursday, January 19.

Through the Decree of the Board of Commissioners, the OJK extended the stimulus related to the restructuring of COVID-19 until March 2023 for the accommodation, food and beverage supply sector, textiles and footwear, Micro, Small and Medium Enterprises (MSMEs), and the province of Bali.

"I consider this policy very appropriate because it is issued by targeting certain sectors and certain areas," he said.

He also supports the OJK's policy of providing steps to anticipate risks that arise from the extension of credit restructuring, by ensuring that business actors who carry out credit restructuring meet the requirements.

The extension of the credit restructuring policy is also in accordance with national economic conditions that have the potential to be affected by uncertainty in global economic conditions, even though they have begun to recover.

According to him, the world economy has not fully recovered from the impact of COVID-19, there is geopolitical tension that causes supply chain disruption, and commodity prices are still experiencing volatility.

"The national economy has shown signs of recovery, but global dynamics needs to be anticipated because sooner or later it will affect domestic conditions," he said.