OJK Ends COVID-19 Stimulus For PVML Sector

OJK (Photo: dock. Antara)

JAKARTA - The Financial Services Authority stated that the sector of the Financing Institution, Ventura Capital Company, Micro Financial Institution, and Other Financial Services Institutions (PVML) was ready to face the end of the COVID-19 stimulus policy regarding the assessment of the quality of financing assets on April 17, 2024.

The provision of the Covid-19 stimulus for non-bank financial services sector companies is regulated in the Decree of the OJK Board of Commissioners Number 55/KDK.05/2022 concerning the Determination of Relaxation Policy for Non-Bank Financial Services Institutions (KDK Special Treatment) which is a stimulus policy for financing targeted debtors who have the status of restructuring COVID-19.

The Chief Executive of the OJK PVML Supervisory, Agusman, said that the Special Treatment KDK is a relaxation policy set by the OJK based on POJK Number 19 of 2022 concerning Special Treatment for Financial Services Institutions in Regions and Certain Sectors in Indonesia that are affected by Disasters.

"KDK Pelakuan Khusus merupakan kebijakan untuk memperpanjang stimulus Covid-19 lanjutan hingga 17 April 2024 khusus guna mendukung segmen usaha mikro, kecil, dan menengah (targeted)," jelasnya dalam keterangannya, Rabu, 17 April.

According to Agusman, the policy was accompanied by encouragement to PVML sector financial service institutions to form a value reduction loss reserve to anticipate the potential decline in the quality of restructuring financing.

According to Agusman, the restructuring of financing in accordance with the COVID-19 stimulus policy is an OJK initiative that has become an important policy in supporting the performance of debtors, the PVML sector, and the Indonesian economy as a whole.

Furthermore, Agusman also stated that in the face of the end of the COVID-19 stimulus policy, OJK has carried out comprehensive analysis and considerations regarding macro and sectoral economic conditions as well as the readiness of the PVML sector, especially regarding the increase in credit risk and resilience of the PVML sector which is projected to be still in good condition.

Agusman said that the end of the stimulus policy related to assessing the quality of assets for debtors with micro, small and medium enterprises had consistently considered the ongoing economic recovery.

"The controlled inflation rate and growth of investment and revocation of the status of the COVID-19 pandemic by the Government of Indonesia through the issuance of Presidential Decree Number 17 of 2023 on June 21, 2023," he said.