JAKARTA - The government has officially decided to provide a relaxation policy for People's Credit (KUR) borrowers affected by floods and landslides in Aceh Province, North Sumatra, and West Sumatra.
Meanwhile, the policy has received approval and direct instructions from President Prabowo Subianto.
Coordinating Minister for the Economy Airlangga Hartarto said that the relaxation would be regulated through a special Government Regulation (PP) which regulates KUR for debtors in the three affected provinces and has set three stages of relaxation in this policy.
He added that the Financial Services Authority (OJK) had also issued the OJK Regulation (POJK) to continue the KUR restructuring process with a relaxation period of up to three years.
"It was decided that OJK had issued a POJK that continued regarding the KUR restructuring process which was given a relaxation until 3 years. Later, the Chairman of OJK will explain and specifically regarding KUR, a separate PP will be made regarding the 3 provinces of Aceh, North Sumatra and West Sumatra and a mapping of the impact of disasters to debtors will be carried out," he explained in a press conference, Tuesday, December 16.
He said the first phase would be valid from December 2025 to March 2026, during which time debtors would be exempt from the obligation to pay installments.
Thus, financing distribution institutions, both banks and insurance companies, do not receive installments or make claims and all subsidy burdens in this phase will be borne by the government.
"The first phase is from December to March, until 2026. Where the debtor does not pay installments and the distributor does not receive installments, and also does not file a claim and the guarantor or insurance does not also file a claim," he said.
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Meanwhile, the second phase is intended for KUR debtors whose business cannot be continued due to severe damage, namely the Government will provide relaxation for a certain period of time, including opening the possibility of eliminating financing for KUR debtors who are already running.
Meanwhile, in the third stage, debtors who are still able to run their businesses will still receive relaxation in the form of credit term extension.
In addition, the government also provides interest subsidies, with the provision of 0 percent interest in 2026 and 3 percent in 2027, which applies to affected debtors who continue financing or for new debtors.
"Then outside the debtor, the relaxation is the extension of the tenor or it can also be the addition of credit. Then also interest subsidies and margin subsidies that are applied for 2026 at 0 percent and 2027 3 percent. Then for new debtors, in connection with this, 0 percent will also be given in 2026 and 2027 3 percent and the following year is normal at 6 percent," he concluded.
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