Outstanding Receivables For Covid-19 Restructuring Down To IDR 6.41 Trillion

Rupiah (Photo: Antara)

JAKARTA - The Financial Services Authority reported that based on an assessment of financial health indicators in February 2024, the financing sector, the Ventura Capital Company, Micro Financial Institutions, and other Financial Services Institutions (PVML) in Indonesia were considered in good condition.

PVML OJK Supervisory Chief Executive Agusman said this was reflected in the trend of restructuring financing receivables which continued to decline in terms of outstanding and increased in terms of the formation of value reduction loss reserves formed by the PVML sector.

"The outstanding value of Covid-19 restructuring receivables until February 2024 reached IDR 6.41 trillion from 172,150 contracts. This number has decreased far from the highest number of COVID-19 restructuring restructuring receivables in October 2020 of IDR 78.82 trillion from 2.57 million contracts," he explained in his statement, Wednesday, April 17.

Agusman conveyed that the Financial Company's Value Reduction (CKPN) Reserves also continued to increase from June 2020 to February 2024.

The increase was shown by the CKPN ratio compared to non-performing financing (CKPN/NPF) increasing from 112.60 percent to 201.78 percent and the CKPN ratio compared to the value of financing at risk (CKPN/Far) increasing from 33.32 percent to 50.11 percent.

According to Agusman, this condition shows that the PVML sector is ready to end the COVID-19 stimulus period in a controlled manner (soft landing) to return to normal conditions.

Furthermore, Agusman conveyed that to ensure the smooth normalization of the policy, the PVML industry can continue the ongoing restructuring of Covid-19 credit by using the provisions of asset quality that apply to each type of PVML industry in anticipating a decrease in asset quality.

"OJK will consistently carry out surveillance measures (supervisory actions) to ensure the readiness of each PVML industry in carrying out risk mitigation processes and meeting the precautionary principle in carrying out its business activities," he concluded.