OJK will extend credit restructuring until March 2022, this is the view of bankers

ILLUSTRATION. BCA. REUTERS / Willy Kurniawan

Reporter: Laurensius Marshall Sautlan Sitanggang | Editor: Handoyo.

KONTAN.CO.ID – JAKARTA. The effect of the economic slowdown due to the Covid-19 pandemic is considered by the Financial Services Authority (OJK) to still leave a burden on banks. As a result, in order to maintain the stability of the financial services system, the regulator has decided to extend the period of granting the relaxation of credit restructuring to March 2022 from the previous ending in March 2021.

This is stated in OJK Regulation Number 11 / POJK.03 / 2020. Chairman of the OJK Board of Commissioners, Wimboh Santoso explained that the relaxation policy on credit restructuring that has been issued by the OJK since March this year has been proven to be able to maintain the stability of the financial services sector from economic pressure due to the impact of the Covid-19 pandemic.

Meanwhile, Chief Executive of OJK Banking Supervision, Heru Kristiyana, added that in the POJK 11 extension, his party had received reports from several banks regarding the debtor’s potential for default.

For this reason, the current trend in banking is to form a reserve so that the trend of non-performing loans (NPL) does not increase when POJK 11 ends in March 2022. debtor assessment, including the formation of CKPN, “Heru said recently.

Several bankers contacted by Kontan.co.id also welcomed the OJK’s policy of extending relaxation. The reason is, according to Corporate Secretary Rully Setiawan, PT Bank Mandiri Tbk, in the midst of the uncertain trend of restructuring demand, it is still there, although it is still small.

“In our opinion, the OJK policy is positive to help business actors, especially MSMEs, to be able to maintain business continuity in the midst of economic uncertainty in the future,” he said, Sunday (8/11).

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Bank Mandiri notes, currently as of October 2020 the company has approved the restructuring of more than 530 debtors with a portfolio value of over Rp 119 trillion. “Currently, we are still receiving requests for relaxation from debtors affected by Covid-19,” he added.

Likewise, Finance Director of PT Bank Central Asia Tbk (BCA) Vera Eve Lim also assessed that the policy was actually carried out to reduce the impact of the economic slowdown due to Covid-19 in the banking sector. Now, with the extension of the relaxation, it will certainly help banks continue to report relaxation loans on a current status. In other words, this will give banks time to make efforts to improve quality, including providing room for the ability to pay debtors to recover.

“The relaxation program from the regulator helps the role and the customer to get through a difficult time to achieve recovery,” he explained. In addition, to anticipate a spike in NPLs, this top private bank has also prepared reserves in line with OJK directives.

According to Vera, BCA has booked a reserve cost of Rp 9.1 trillion, an increase of Rp 5.6 trillion or an increase of 160.6% year on year (yoy) until the third quarter of 2020. According to him, this figure is in line with the increased risk of lowering credit quality to front.

For your information, as of mid-October 2020, BCA has processed Rp. 107.9 trillion proposals for credit restructuring or around 19% of the company’s total credit. The relief is given to more than 90,000 customers in all segments. This number was recorded to have increased, because as of the end of September 2020, BCA’s total restructured loans amounted to Rp 90.7 trillion or 16% of total loans.

Quarter three money, President Director of PT Bank Panin Tbk Herwidayatmo explained that until now his party had given restructuring to debtors affected by Covid-19, around 24% of the total credit. According to him, in the future the addition or proposed restructuring at Bank Panin will not increase.

This is because some of the current restructuring debtors have started to show business recovery. Meanwhile, according to him, the extension of the restructuring policy by OJK is one of the regulator’s preventive steps. “I think the OJK has decided on a policy after looking at data from the Financial Services Industry as a whole and during the several months the COVID-19 pandemic has been in Indonesia,” he said.