OJK Chairman Affirms Real Sector to Survive Covid-19 Pandemic

Chairman of the OJK Board of Commissioners delivers an online press statement, Friday (20/3). (Photo by: PR/Rahmat)

Indonesia Financial Services Authority (OJK) Chairman Wimboh Santoso affirmed that banking liquidity is still normal and the real sector can still survive after the Covid-19 pandemic.

“We, the OJK, provide flexibility to entrepreneurs to be able to do relaxation in the calculation categorized as non-performing. If it is non-performing, the room to wiggle is cramped, it can no longer be given additional capital,” Wimboh stated online, Friday (20/3).

The OJK, he continued, gave a leeway to relax the non-performing calculations. The flexibility allows the debtors to escape the non-performing loan if they managed to repay their loan accurately while ignoring the other two pillars (business prospect and debtor conditions). This flexibility is expected to be applicable for a year.

“This applies to customers under Rp10 billion in debt. Debt over Rp10 billion can be restructured immediately to be categorized as performing,” Wimboh stated.

According to Wimboh, the OJK also allowed under Rp10 billion debt including MSMEs, including Smallholder Business Credit (KUR) to be restructured immediately with a delay to pay interest, or principal, or both for a maximum period of 1 year.

“It can be customized whether the customer requires less than 1 year or needs a year. The sectors can be sectors that have direct or indirect impacts. We gave the flexibility for the bank to choose their options,” he said, adding that MSMEs and KUR on any sector can be restructured.

On motorcycle loans for online motorcycle taxi drivers, the Chairman also asked leasing companies not to hire debt collectors.

“That is an outline of how we support the Government’s efforts so that the business sector can survive the Covid-19 with minimized impacts,” he stated.

On the capital market, Wimboh stated all shares listed in Indonesia are fundamentally good. “By providing leeway to the real sector will provide a wider wiggle room for the business sector in Indonesia,” he explained.

All sectors, including corporates, commercial, retail, and MSMEs will be temporarily impacted. The condition, he said, will return to normal after the Covid-19 pandemic.

The OJK together with the stock exchange, has implemented various policies in the capital market including the prohibition of short selling, the implementation of auto rejection and trading halt.

In the future, Wimboh stated, there will be various policy options that vary in strength such as permission to buyback without Annual General Meeting of Shareholders.

Wimboh further said that the OJK worked with various government agencies to stabilize the stock market. The OJK also coordinated with various associations, banks, and non-banks to implement Minister of Finance’s fiscal policies and BI Governor’s policy to loosen the minimum statutory reserves so that the impact can be directly felt by the people. (DND/EN)

Translated by: Fairuzzamani Inayatillah
Reviewed by: Mia M. Bonaedy