OJK Says It Will Not Issue New Rules For Extending KUR Restructuring

Illustration (Photo: Doc Antara)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar revealed that his party does not need to issue a new OJK or POJK regulation regarding the extension of the credit restructuring policy specifically for the People's Business Credit (KUR) segment.

"There is no need (to issue a new POJK)," he said when met at the Jakarta Convention Center area, Thursday, August 1.

Mahendra explained that his party had regulated POJK related to the credit restructuring mechanism in normal times so that financial institutions could take advantage of this to provide restructuring for debtors who have good potential and prospects.

To note, credit restructuring during normal times is regulated in POJK Number 40 of 2019 concerning asset quality.

"But on the other hand, the party requires adjustments for repayment from installments and interest. So, if it is indeed a mechanism that is usually carried out by banks," he said.

Furthermore, Mahendra conveyed that the extension of the KUR credit restructuring proposed by the government was also for the contract period in the 2022 period.

So that the credit extension goes into normal times, not during times of crisis such as the COVID-19 pandemic.

"That's actually a statement from the government, we don't go too far in there, but if it's true in 2022, it's back again, it's a normal period that can be done with existing arrangements, so there's no problem at all," he said.

However, Mahendra explained, the government is preparing a scheme to pay attention to KUR restructuring for a certain period of time.

"Well, this is what the team is finalizing, the Coordinating Minister for the Economy and of course with the Ministry of Finance, the Ministry of MSME Cooperatives," he said.