Jakarta, CNBC Indonesia – The Financial Services Authority (OJK) noted that until August 24, 2020, the value of bank credit restructuring reached IDR 863.62 trillion.
This restructuring can be in the form of postponement of interest and principal payments as well haircut depending on the conditions of each debtor and bank policy.
Chairman of the OJK Board of Commissioners Wimboh Santoso said that the restructuring policy was taken by OJK and outlined in a special POJK to mitigate credit risk (credit risk) due to a pandemic which could have an impact on the increase in non-performing loans (non performing loan/NPL).
“We are trying to allow this debtor because Covid-19 is allowed in the current category but under the restructuring scheme, it means that payments can be delayed, haircuts are even given additional working capital, especially when it is operational again,” said Wimboh in webinar, Friday (18/6/2020).
The restructuring stimulus contained in POJK 11 of 2020 will be carried out until March next year.
However, OJK did not rule out the possibility to extend the application of this POJK until 2022, depending on the condition of the debtor in the future.
Unfortunately, although this restructuring policy is good for debtors, this is not the case for banks.
OJK estimates that by the end of the year national banks will experience a decline profit or a net profit of between 30 and 40 percent due to the absence of interest payments from the debtor.
“If we don’t do this well, there will be a big risk that banks will not be able to hold back too long profit and loss-his. Customers are in smooth restructuring but banking revenue has dropped drastically. Earlier, Rp. 863 trillion. The restructuring is still in arrears for interest and principal and banking revenue has fallen, but deposit interest is being paid continuously, “he continued.
“It is estimated that we have the potential to decrease bank profits by 30-40% by the end of this year. We hope that next year it will start again [membaik], “he explained.
According to Wimboh, this decline will only occur until the end of this year, because the restructuring has experienced a downward trend with the peak occurring in May and June 2020.
Although it is estimated that the restructuring value will reach 40% of the total bank debit balance or reach Rp 1,376.6 trillion.
Banking performance is expected to improve in 2022, although next year it is predicted that the performance of these banks will improve again.
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