The End of the Covid-19 Banking Credit Restructuring Stimulus

OJK Ends Banking Credit Restructuring Stimulus Policy

Otoritas Jasa Keuangan/OJK (The Indonesia Financial Services Authority)  announced that the banking credit restructuring stimulus policy for the impact of Covid-19  ends on March 31, 2024. The end of this policy is consistent with the government's revocation of the Covid-19 pandemic status in June 2023 and considers the recovery of the Indonesian economy from the impact of the pandemic, including the condition of the real sector.

The Policy Has Made a Real Contribution to the Economy

The policy mix implemented in the banking sector, particularly through the Covid-19 stimulus policy, has made real contributions in providing support from pressures on the economy since the beginning of the pandemic until now. The OJK regulation on stimulus is a pioneering policy in the financial sector that represents a quick response from OJK. The stimulus is countercyclical in nature and takes the form of a stimulus to debtors directly or indirectly affected by Covid19, through, among others, credit restructuring.

MSMEs are the Largest Recipients of the Stimulus

During the four years of implementation, the utilization of this credit restructuring stimulus has reached IDR830.2 trillion, which was provided for 6.68 million debtors in October 2020, representing the highest figure in Indonesia’s financial history. Seventy five percent of the total debtors receiving the stimulus are of the MSME segment, representing 4.96 million debtors with a total outstanding amount of IDR348.8 trillion.