Jakarta – The Financial Services Authority (OJK) has officially implemented a special policy regarding credit and financing facilities for debtors severely affected by the recent floods and landslides across three key provinces: Aceh, North Sumatra, and West Sumatra. This crucial measure aims to provide much-needed relief and support for those grappling with the aftermath of these natural disasters.
The decision to establish this policy was made during the OJK Board of Commissioners Meeting in Jakarta on Wednesday, December 10th. This followed a thorough data collection process in the affected regions and comprehensive assessments that clearly indicated the disasters’ significant negative impact on the local economies. Consequently, the ability of many debtors to meet their repayment obligations has been severely compromised, necessitating immediate intervention.
This special treatment is a strategic component of OJK’s risk mitigation efforts, designed to prevent the disaster’s economic repercussions from escalating into a systemic crisis. Furthermore, it is intended to accelerate the economic recovery of the affected regions, enabling communities and businesses to rebuild and regain stability more swiftly.
The procedures for implementing this special treatment for credit or financing from various financial institutions—including banks, financing companies, venture capital firms, microfinance institutions (LKM), and other financial service entities (PVML)—are anchored in OJK Regulation Number 19 of 2022. This regulation, often referred to as POJK Bencana, specifically addresses Special Treatment for Financial Service Institutions in Certain Regions and Sectors in Indonesia Impacted by Disasters, providing a clear framework for assistance.
The comprehensive special treatment extended to disaster-affected debtors encompasses several vital provisions:
- Credit/Financing Quality Assessment: For financing ceilings up to IDR 10 billion, the quality assessment will solely be based on payment punctuality, simplifying the evaluation process.
- Restructured Credit/Financing Quality: All restructured credit or financing will be categorized as “current.” Importantly, restructuring can be applied to financing disbursed either before or after the debtor was impacted by the disaster. For LPBBTI Organizers, obtaining approval from the fund provider is a prerequisite for restructuring.
- Provision of New Financing: New financing facilities can be extended to affected debtors, with credit quality assessed separately for these new provisions (the “one obligor” principle will not be applied), ensuring fair evaluation for new support.
This pivotal policy will remain in effect for a period of up to three years, commencing from its official establishment date of December 10, 2025, offering sustained support to those recovering from the disasters.
In a parallel move to support the affected communities, the OJK has also called upon the insurance and reinsurance industries to activate their disaster response mechanisms immediately. This is aimed at providing seamless and efficient support to individuals and businesses in the disaster zones, underscoring OJK’s commitment to a holistic recovery approach.
The requested activation of disaster response includes several key actions: simplifying claim processes to expedite payouts, systematically mapping affected policies, implementing disaster recovery plans as needed, significantly enhancing communication and customer services, and fostering close coordination with the National Disaster Management Agency (BNPB), Regional Disaster Management Agencies (BPBD), and reinsurers. Insurance and reinsurance companies are also required to submit regular progress reports on claim handling to the OJK, ensuring transparency and accountability in their response efforts.
