JAKARTA - The Financial Services Authority began to implement a policy of providing stimulus to the economy through the issuance of POJK No.11 / POJK.03 / 2020 concerning the National Economic Stimulus as a Countercyclical Policy on the Impact of Coronavirus Disease Spread 2019 on Thursday (19/3).
"With the issuance of this POJK, the stimulus for the banking industry has started effectively from March 13, 2020 to March 31, 2021. Banks are expected to be proactive in identifying debtors affected by the Covid-19 spread and immediately implementing the stimulus POJK," said the Chief Executive OJK Banking Supervisor Heru Kristiyana.
The POJK on economic stimulus was issued to reduce the impact on debtor performance and capacity which is expected to decline due to the Corona virus outbreak so as to increase credit risk which could potentially disrupt banking performance and financial system stability. POJK is also expected to be a countercyclical impact of the Corona virus spreading so that it can encourage the optimization of banking performance, especially the intermediation function, maintain financial system stability, and support economic growth.
The stimulus policy referred to consists of two things, firstly is the assessment of the quality of credit / financing / provision of other funds based only on the accuracy of payment of principal and / or interest for loans up to Rp 10 billion. Then, the second policy is restructuring by improving the quality of credit / financing smoothly after restructuring. The terms of this restructuring can be applied by banks without credit limits. (LM)