Gov’t Extends Economic Stimulus Policy to Keep Economic Recovery Momentum

Chairman of the OJK Board of Commissioners Wimboh Santoso (Photo: Rahmat/PR)

The Financial Services Authority (OJK) has issued two provisions on the extension of the relaxation policy period for bank credit restructuring from March 2022 to March 2023.

The OJK said the move is aimed at maintaining the momentum of economic recovery in the wake of the COVID-19 pandemic.

The POJK issued consists of POJK Number 17/POJK.03 of  2021 on Second Amendment to POJK Number 11/POJK.03 of 2020 on National Economic Stimulus as a Countercyclical Policy for the Impact of the Spread of Coronavirus Disease in 2019 and POJK Number 18/POJK.03 of 2021 on Second Amendment to POJK Number 34/POJK.03 of 2020 on Policies for Rural Banks (BPR) and Sharia Rural Banks (BPRS) as the Impact of the Spread of Coronavirus Disease in 2019.

Chairperson of the OJK Board of Commissioners Wimboh Santoso stated that the policy is expected to continue the momentum of economic recovery and to encourage growth in bank lending.

“The extension of the countercyclical policy is an anticipatory and follow-up step to encourage optimization of banking performance, maintain financial system stability, and support economic growth to maintain the momentum of banking indicators that have improved and to prepare banks and debtors to return to normal so as to avoid potential fluctuations after this policy ends,” said Wimboh in a release issued by the OJK, Wednesday (15/9).

The extension of the two provisions related to the economic stimulus policy, Wimboh added, is also expected to maintain performance stability from both the banking side and the business sector which play an important role in national economic recovery. (PR of OJK/UN) (EST/EP)