OJK Release Of New Provisions For Credit Distribution By BPR And BPRS

JAKARTA - The Financial Services Authority (OJK) is said to have just issued a new regulation related to the maximum limit on lending by Rural Banks Credit (BPR) and Sharia People's Financing Banks (BPRS). This provision is contained in the Regulation of the Financial Services Authority (POJK) Number 23 of 2022.

OJK Director of Public Relations Darmansyah said this policy aims to maintain stability and encourage increased contributions from BPR and BPRS in economic growth.

"Through POJK 23/2022, BPPR and BPRS can increase the credit portfolio or real sector financing while still prioritizing the principle of prudence and risk management," he said in a written statement on Friday, December 9.

According to Darmansyah, the authorities' new policy has taken into account the principle-based approach, and harmonization with the provisions of the Maximum Limit on Granting Loans (BMPK) and the Maximum Limit on Fund Disbursement (BMPD) which applies to commercial banks.

"OJK also believes that this rule is in accordance with what applies to BPR and BPRS, such as the provisions for assessing the health level issued this year, and reporting online through the OJK Reporting Application (APOLO) by BPR and BPRS," he said.

Darmansyah added that POJK 23/2022 also revoked POJK No. 49/POJK.03/2017 concerning Maximum Limits for Providing Rural Banks and PBI Credit No.13/5/PBI/2011 concerning Maximum Limits on the Distribution of Sharia Banks.

"The improvement in the BMPK BPR and BMPD BPRS provisions is expected to encourage agile, adaptive, contributive, and resilient business continuity in providing access to micro and small business finances (UMK) as well as the community within the scope of the region or region," he stressed.

The following are the points of POJK 23/2022.

1. Obligation to apply the precautionary principle in providing funds or distribution of funds

2. Related parties are individuals, companies or agencies that have a control relationship with BPR or BPRS, either directly or indirectly, through ownership relations, management relations, and/or financial relationships

3. Provision of funds or distribution of funds to all related parties is set at a maximum of 10 percent of the BPR or BPRS Capital

4. Provision of funds or distribution of funds in the form of placement of interbank funds at BPR or other BPRS which are non-related parties is set at a maximum of 20 percent of BPR or BPRS capital

5. Provision of funds in the form of credit or disbursement of funds in the form of financing to one borrower or customer receiving non-related party facilities is set at a maximum of 20 percent of the capital of BPR or BPRS

6. Provision of funds in the form of credit or disbursement of funds in the form of financing to one group of borrowers or groups of customers receiving non-related party facilities is set at a maximum of 30 percent of BPR or BPRS capital