VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Indonesian Financial Services Authority (OJK) extended the Covid-19 stimulus for non-bank financial industry since the Covid-19 pandemic predictably still continues. The stimulus is extended until April 17 2023, from previously April 17 2022. That was announced by OJK's Public Relations Deputy Commissioner, Anto Prabowo in a press release on Friday (7/1). He said that the pandemic is predicted to continue, negatively affecting debtors and non-bank financial service institutions, and potentially disturb the performance.

Anto Prabowo further remarked the policy was issued to maintain non-bank financial services industry performance improvement and stability as well as to avoid fluctuation potential when the Covid-19 countercyclical policy expires.

Previously, as a quick response to the Covid-19 impact, in March 2020, OJK had issued restructuring policies that were done by the finance companies. Until December 27 2021, total financial restructuring had reached Rp 218.95 trillion with 5.22 million approved restructuring contracts.

The assessment for ability and propriety of non-bank financial service institutions' main party candidate was held face-to-face at OJK office, and other places set by OJK or by video conference.

Meanwhile, working capital financial businesses with working capital facilities must fulfill the requirements, namely maximum funding value for every debtor amounting to Rp 10 billion. The candidate also must possess collateral in the form of vehicle, land, building, and/or heavy equipment. OJK also analyses the debtor's payment ability.

Besides, fintech lending can still facilitate restructuring applications submitted by debtors affected by Covid-19 to the lender, which must follow the regulation and be approved by the lender.