The Financial Services Authority (OJK) assesses that the financing sector, venture capital companies, micro financial institutions, and other financial services institutions (PVML) are 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 financing restructuring 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," said OJK PVML Supervisory Chief Executive Agusman in Jakarta, quoted from Antara, Wednesday, April 17.
In facing the end of the COVID-19 stimulus policy, OJK has conducted 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 in the PVML sector, which is projected to be still in good condition.
The end of the stimulus policy related to the assessment of asset quality for debtors with micro, small and medium enterprises has considered the ongoing economic recovery, with the level of controlled inflation and growth of investment and the revocation of the status of the COVID-19 pandemic by the Government of Indonesia.
Agusman said that based on an assessment of the financial health indicator in February 2024, the PVML sector in Indonesia was considered in good condition.
This is reflected in the trend of restructuring financing receivables which continue to decline in terms of outstanding and increase 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 amount of restructuring restructuring receivables for COVID-19 in October 2020 of IDR 78.82 trillion from 2.57 million contracts.
The allowance for the decline in value (CKPN) of financing companies also continued to increase from June 2020 to February 2024, as 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.
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"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," said Agusman.
Furthermore, 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.
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