Rp 933 T of Credit Restructuring, the Biggest in the History of RI

Jakarta, CNBC Indonesia – The Covid-19 pandemic has disrupted almost all businesses, including in the banking industry. The Financial Services Authority (OJK) said the impact of the pandemic had caused banks to restructure loans, which currently have reached Rp 932.6 trillion, the largest in history.

According to the Chief Executive of Banking Supervision, Heru Kristiyana, the restructured credit amount consists of 7.53 million borrowers. The details, 5.84 million consisted of debtors in the Micro, Small and Medium Enterprises (UMKM) sector, with an outstanding of IDR 369.83 trillion.

Meanwhile, the remaining 1.69 million came from non-MSMEs with a total restructured credit worth IDR 562.54 trillion.

“I think this is the biggest credit restructuring in history since I supervised banks from Bank Indonesia to OJK,” Heru Kristiyana said in an online webinar, Friday (20/11/2020).

Heru stated, through OJK Regulation (POJK) 11 / POJK.03 / 2020 of 2020 concerning National Economic Stimulus as a Countercyclical Policy for the Impact of the Spread of Corona Virus Disease 2019, OJK has implemented a credit relaxation policy which is expected to be beneficial for customers to postpone installments principal and interest, too, the banking industry has room to organize cash flow.

“With numbers [restrukturisasai] “This restructuring will provide a very good space for customers and banks to manage cash flow, debtors organize themselves to face the pandemic to fulfill their obligations to banks,” he said.

However, Heru assessed that if the impact of the pandemic continues, the banking industry must be prepared for the worst.

However, Heru said, in facing the challenges ahead, the key is that banks must have sufficient endurance and capital strength. This should be anticipated by the banking industry, including a decrease in the quality of debtors if the restructuring is not successful.

“Of course, I do not dare to imagine if this Rp. 932.6 trillion fails, for example, this will have a tremendous impact on our banking sector in the future,” he said.

[Gambas:Video CNBC]

(hps / hps)

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