Saturday, 28 November 2020 | 00:58 WIB

OJK Open to Issuing Policy on Financing Company Restructuring

OJK Open to Issuing Policy on Financing Company Restructuring (special)

JAKARTA, NETRALNEWS.COM - The Indonesia Financial Services Authority (OJK) says it is open to the option of issuing a regulation on the restructuring of finance companies affected by the Covid-19 pandemic.

Riswinandi, Chief Executive Non-Bank Financial Industry Supervisory at OJK, said the regulation could be issued at the same time with an extension of bank loan restructuring, or the other way around.

"We see that the same (regulation would also be issued for financing companies, in addition to several other things later, whether at the same time with the revision of the OJK regulation (POJK 11 of 2020) or with further announcements," Riswinandi said in a press conference on Financial Services Sector, on Monday (11/02/2020).

Riswinandi said that the regulation that provides relief for financing companies is necessary so that the companies can continue their businesses.

Nevertheless, he admitted that the regulator needs to be careful in determining the instruments used to provide opportunities and accommodative policies for financing companies.

"We need to be careful on which instruments are used for the opportunity to issue fund raising outside the banking system. So this is what we learned," Riswinandi said.

For information, OJK has extended the bank loan restructuring policy until March 2020.

The policy extension will emphasize the implementation of a more adequate bank risk management, including an assessment of the bank's survivability and business prospects, as well as an assessment of the adequacy of allowance for impairment losses.

As for October 5, 2020, the restructuring of loans channeled by banks had reached IDR914.65 trillion. The restructuring was distributed to 7.53 million debtors, which includes 5.88 million debtors from the micro, small, and medium enterprises (MSME) sector.