OJK Extends Credit Restructuring to 2022, These are the Benefits


The Financial Services Authority (OJK) will issue an extension policy of OJK Regulation (POJK) No.11 / POJK.03 / 2020 related to relaxation of credit restructuring which should end on March 31, 2021 to March 31, 2022. So what are the benefits?

Chief Executive of the OJK Banking Supervision Heru Kristiyana explained that the extension of the credit restructuring relaxation is beneficial for economic recovery. This is because the pandemic that has hit the economy has never ended, so recovery efforts are needed.

“This restructuring is expected to provide space for customers or debtors who still have business prospects but require a longer time to return to normal but can still fulfill their obligations to the bank,” Heru was quoted as saying in the webinar on Sunday (22/11/2020).

Heru said this was also a response in maintaining the real sector so that it could develop in the midst of the pandemic. In addition, this policy is expected to be able to support the decline in the quality of restructuring debtors and maintain the stability of the financial services sector.

“With such large numbers of course our concern, banks also hope that this restructuring can provide a good space for banks to manage cash flow and debtors to organize themselves to face this pandemic,” he said.

Furthermore, Heru said the benefits that have been felt by debtors for this restructuring, one of which lies in the growing credit indicator.

“If we look at the position of the year to date (ytd) until October or mid-November, our credit is still contracting, but this has started to have a bright side or bright spots starting to stretch again,” he explained.

Meanwhile, the President Director of Bank Mandiri Darmawan Junaidi welcomed the extension of the credit restructuring through POJK 11. According to him, this extension of credit restructuring will later be able to help banks and business actors whose businesses have been affected by COVID-19.

“With current conditions, we see that POJK 11/2020 only reaches March 2021, it will be quite difficult for us in the future. So the decision to extend this POJK is very appropriate because it can support banking functions and national economic recovery,” he said.

He also assessed that with the enactment of the POJK, banks can better manage liquidity and capital, because there is no delay in interest income received, and there is also a need to establish CKPN or allowance for impairment losses.

“Credit restructuring helps entrepreneurs, the public and banks through the economic crisis due to the pandemic. This benefit is certainly very good and we hope that this pandemic will not continue past 2021,” he concluded.



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