Good News From OJK! Debtors Who Are Hit By A Disaster Are Certain To Be Able To Get Relief

The Financial Services Authority (OJK) has officially released a new policy related to granting a number of waivers of obligations to debtors if they are experiencing a disaster.

This is stated in OJK Regulation (POJK) Number 19 of 2022 concerning the Special Treatment of Financial Services Institutions (LJK) in Regions and Certain Sectors in Indonesia for Disaster Impacts (POJK for Special Disaster Impacts).

OJK Public Relations Director Darmansyah said the POJK for Special Disaster Impact Treatment was issued updating the previous provision, namely POJK 45/POJK.03/2017 which only regulates special treatment for debtors affected by natural disasters and applies to banks.

"Meanwhile, the POJK for Special Treatment of Disaster Impacts which has just regulated special treatment for the impact of disasters caused by natural and non-natural disaster conditions and applies to all financial service institutions (LJK)," he said in a written statement, Wednesday, November 9.

According to Darmansyah, through this new belief, the authority can determine certain regions and or sectors in Indonesia that are affected by disasters and the period of special treatment.

He explained that there are seven main aspects in determining the area and or certain sectors affected by the disaster. First, the area of the area affected by the disaster. Second, the number of fatalities. Third, the amount of material losses.

Fourth, the number of debtors estimated to be affected by the disaster. Fifth, the percentage of the amount of credit or financing given to debtors affected by the disaster to the amount of credit or financing in certain regions and or sectors affected by the disaster.

Sixth, the percentage of the amount of credit or financing given to debtors affected by the disaster to the amount of credit or financing in certain areas and or sectors affected by the disaster.

"And the last one is another aspect that according to the OJK needs to be considered," he said.

Darmansyah added that the definition of a disaster that is the scope of this POJK is an event or series of events that threaten and interfere with people's lives and livelihoods caused by both natural factors and or non-natural factors.

"It can also be due to human factors that cause casualties, environmental damage, property losses, psychological impacts, disruption of the performance of industry players in the financial services sector, and or affect the economic condition of the community," he stressed.

Furthermore, the issuance of a Special Treatment POJK for Disaster Impacts applies to banks, capital markets and non-bank financial services institutions (LJKNB) as well as other financial service institutions.

Meanwhile, LJKNB includes finance companies, sharia financing companies, venture capital companies, Islamic venture capital companies, infrastructure finance companies.

Other financial services institutions consist of Indonesian export financing institutions, housing secondary financing companies, microfinance institutions, PT Permodalan Nasional Madani, and information technology-based joint funding service providers.

Darmansyah also explained that special treatment for banks includes determining the quality of assets, restructuring credit or financing, and providing new funds, which apply mutatis mutants for most LJKNB.

Especially for information technology-based joint funding service providers, funding restructuring can be carried out after obtaining approval from the funder. Furthermore, special treatment for the capital market industry will be further determined.

"Special treatment for LJK is implemented while still paying attention to the precautionary principle to prevent misuse in the application in the field (moral hazard)," Darmansyah concluded.