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Covid-19 (Corona Virus Disease) Article - Economic…
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Covid-19 (Corona Virus Disease) Article - Economic Stimulus by the Financial Services Authority

Based on Press Release No. SP 13 / DHMS / OJK / II / 2020 dated 26 February 2020, the Financial Services Authority ("OJK") said that OJK prepared a stimulus policy to maintain national economic growth as a countercyclical policy in anticipating the down-side risk from the spread of the corona virus (COVID- 19). On March 13, 2020 OJK established Regulation of the Republic of Indonesia Financial Services Authority Number 11 / POJK.03 / 2020 concerning National Economic Stimulus as a Countercyclical Policy on the Impact of Spreading Coronavirus Disease 2019 ("POJK No. 11/2020").

As for some economic stimulus regulated in POJK No. 11/2020 is as follows:

  1. Banks, taking into account the application of applicable risk management, can implement asset quality determination policies and credit or financing restructuring policies that support economic growth stimulus for debtors affected by the spread of COVID-19 including micro, small and medium business debtors.
  2. Guidelines for determining debtors affected by the spread of COVID-19 (including micro, small and medium business debtors) contain at least:
    1. debtor criteria determined to be affected by COVID-19; and
    2. sectors affected by COVID-19.
  3. Determination of asset quality in the form of:
    1. credit at Conventional Commercial Banks (BUK);
    2. financing for Sharia Commercial Banks (BUS) or Sharia Business Units (UUS); and / or
    3. provision of other funds on the BUK, BUS, or UUS, for debtors affected by the spread of COVID-19 including micro, small and medium business debtors with a maximum ceiling of Rp 10,000,000,000.00 (ten billion rupiah), can be based on the accuracy of the principal and / or interest or margin / profit sharing / ujrah.
  4. Determination of asset quality in the form of:
    1. Credit at Rural Banks (BPR); and / or
    2. Financing at Sharia Rural Financing Banks (BPRS),
    3. For debtors affected by COVID-19, including micro, small, and medium business debtors with a maximum ceiling of IDR 10,000,000,000.00 (ten billion rupiah), can be based on the accuracy of payment of principal and / or interest or margin / profit sharing / ujrah .
  5. Banks can provide credit or financing and / or provide other new funds to debtors affected by the spread of COVID-19 including micro, small and medium business debtors, by determining the quality of credit or financing and / or providing other new funds:
    1. for credit or financing and / or the provision of other new funds with a ceiling of not more than Rp 10,000,000,000 (ten billion rupiah), determination of the quality of credit or financing and / or provision of other funds; or
    2. for credit or financing and / or the provision of other new funds with a ceiling of more than Rp 10,000,000,000 (ten billion rupiah), determination of the quality of credit or financing and / or provision of other funds in accordance with the provisions of the OJK regulations regarding quality assessment asset.
  6. Banks that determine credit quality or financing and / or other fund provision are only based on the accuracy of the principal and / or interest payment or margin / profit sharing / ujrah submitting Credit Stimulus Reports or Financing and / or Provision of Other Funds Assessed Based on Accuracy in Payment by using the report format as attached in POJK No. 11/2020.
  7. Banks conducting credit or financing restructuring submit Credit Stimulus or Restructuring Financing Reports using the report format as attached to POJK No. 11/2020.
  8. The reports referred to in point 6 and point 7 above shall be submitted based on the position of the end of the reporting month offline to OJK for the positions at the end of April 2020, June 2020, September 2020, December 2020, and March 2021.
  9. Implementation of policies that support economic growth stimulus for debtors affected by the spread of COVID-19, including micro, small and medium business debtors, be valid until the date March 31, 2021.

With the stipulation of the economic stimulus, it is hoped that businesses will get relaxation during the COVID-19 pandemic in the Republic of Indonesia.

 

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