VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

Financial Services Authority (OJK) revealed the total restructuration of banking industry credit surpassed 336.97 trillion rupiahs. The number was proposed by 3.88 million debtors affected by Covid-19 until May 10 2020. That was reported by OJK Commissioner Chairman Wimboh Santoso in online press conference with Financial System Stability Committee in Jakarta on Monday.

According to Wimboh, mostly was micro small medium enterprises around 167 trillion rupiahs from 3.42 million debtor. While the credit restructuration from financing companies until May 8 2020, total approved contracts for restructuring reached 1.32 million debtors amounting to 43 trillion rupiahs.

As reported by Antara news agency, Wimboh Santoso said, credit restructuring form was postponement of loan principal and interest for six months. The credit restructuring policy was expected not to give greater pressure towards nonperforming loans both in bank and financing companies.

Wimboh Santoso explained, with the restructuring, nonperforming loan from affected debtor will be deemed performing so that bank and financing institutions do not need to make reserve funds. According to him, reserve funds will only narrow down the space for capital, bank, and financing companies to expand and provide loan to customer.

Wimboh Santoso believed that credit restructuring can hold nonperforming loan from increasing. According to him, all bank and financing companies were enthusiastic to join this program. He assured, credit still grows because real sector still has credit facility. Besides, in the current situation, government needs additional credit so that the project under development can still run as expected.

Government previously decided to provide loan principal postponement and credit interest subsidy for six months from April 2020. Financial Minister Sri Mulyani Indrawati previously revealed the amount of interest subsidy for micro small debtor under 500 million rupiahs was six percent for the first three months and three other percent for the next three months. While for small medium businesses with credit ranging from 500 million up to 10 billion rupiahs, the given subsidy is three percent for the first three months and two percent for the next three months.

Credit restructuring was expected to give support to debtor who proposed the facility. Government recorded, debtors at secondary banks were 1.62 million, were 20.02 million at banks, and 6.76 million at financing companies