OJK Boss Wimboh Santoso Ensures Mentok Credit Restructuring Is IDR 971 Trillion

OJK Chairman Wimboh Santoso. (Photo: Doc. Antara)

JAKARTA - Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Wimboh Santoso confirmed that the restructuring of bank credit has reached its peak and is expected to begin to slope and even reverse to record growth.

"The value of bank restructuring that we recorded as of January 4 has reached Rp. 971 trillion from a total of 7.5 million debtors," he said in a webinar Tuesday, January 26.

Wimboh detailed, of this amount, Rp. 386.6 trillion were debtors who came from the micro, small and medium business segment or MSMEs with a total of 5.81 million customers.

Meanwhile, the remaining Rp584.4 trillion were non-MSME debtors, with 1.7 million customers being mentioned.

"It is flat (the value of banking restructuring) at this time," said Wimboh.

The head of the authority also said that credit growth this year will be at a high enough level compared to 2020. This is because after being corrected quite deeply over the past year, a surge in banking intermediation is sure to occur before it reaches normal levels.

"Just like the 1997 or 1998 crisis, and the financial crisis in 2008, where after going through the critical phase, credit could grow to 25 percent, I remember that very well. However, after that it will return to normal levels, "he said

For information, the Financial Services Authority revealed that in 2020 bank credit growth contracted quite deeply to minus 2.41 percent. This figure is very different from the performance of Islamic banking financing which is still growing by 9.5 percent.

Meanwhile, the four state-owned banks that are members of the State Bank Association (Himbara) were only able to slightly increase by 0.6 percent.