Banking Observer: Banks Don't Just Accept Requests For Restructuring Troubled Mining Companies

Illustration. (Photo: Pixabay)

JAKARTA - The coal mining company, PT BG in South Sumatra, is suspected to be currently applying for restructuring to PT Bank Negara Indonesia (BNI). The corporate action was allegedly because PT BG was unable to pay the installments including the interest on the loan.

Responding to this, Banking Observer Deni Daruri said that before agreeing to PT BG's request for restructuring, the bank must conduct a feasibility test by values. It aims to see the business prospects of companies that propose restructuring.

"Will the restructuring have a positive impact on improving the company's cash flow and will it not improve its cash flow? It will determine how banks will decide what kind of restructuring should be done and what restructuring should be done immediately," Deni told reporters, Wednesday. June 29.

He also revealed the cause of the company being unable to pay the interest on the installments to the credit. He said this could happen if the troubled companies were not carefully evaluated by the bank in analyzing the 6Cs that must be complied with in examining the ability of prospective debtors.

He said that the correct restructuring is a restructuring that makes the company oriented solely to paying the variable costs.

The reason is, he said, if the company stops operating, it will be detrimental to the bank that has provided the loan. Especially if the bank does not have collateral or guarantees from the credit they have provided.

So Deni appealed that all banks under the Financial Services Authority (OJK) must provide clear directions for the banking world regarding business restructuring to credit that have a clear objective orientation target and the business must be able to pay the variable costs.

Deni said the government should have learned from the 1997 banking crisis, and should be able to buy bad loans at market prices, not book prices. So according to him, this step can provide a large possibility for increasing asset recovery from restructured bad loans.

Because if the restructuring is done wrong, it will be detrimental to the banking sector and will have a major impact on the Indonesian economy in general.

Deni also asked OJK to start analyzing companies that want to apply for restructuring, whether the restructuring is the result of the bank having conducted an analysis based on the 6C properly and correctly.

"Whether it's BUMN or non-BUMN that doesn't analyze the 6Cs properly. It means that by knowing the types of banks that don't analyze the 6Cs professionally, they should be given sanctions," he continued.

Not only that, according to him, the restructuring system for troubled banks must be repaired as soon as possible, considering that the stagflationary economic crisis will continue in the next few years.