Countercyclical Policy to be Set to Mitigate the Impact of Covid-19 Pandemic

Friday, April 03 2020 | BANKING

The Financial Services Authority (Otoritas Jasa Keuangan  - “OJK”) has issued Regulation No. 11/POJK.03/2020 on National Economic Stimulus as Countercyclical Policy in Relation to the Impact of the Outbreak of the Coronavirus Disease 2019 (“Regulation 11/2020”) in response to the impact of Covid-19 upon the debtor’s abilities to fulfill their financing payment obligations. Regulation 11/2020 regulates banks to implement policies which support economic growth stimulus for debtors who are experiencing the impact of Covid-19 in their economic activity.

The policies that shall be adjusted during the current Covid-19 pandemic are as follows:

  1. Asset quality determination policy;
  2. Credit or financing restructuring policy;
  3. Asset quality determination policy;
  4. Credit or financing restructuring policy;
  5. Granting of new funds; and
  6. Reporting obligations.

Implementation of these policies shall comply with the various provisions set under several regulations. For further inquiries and assistance relating to banking policy, do not hesitate to contact our associate specializing in banking law, Ms. Ratih Perwitasari (ratihperwita@sajogolaw.com or consult@lawfirm.sajogolaw.com).

Source  : 'OJK Sets Countercyclical Policy for Banks and Their Debtors in Effort to Mitigate the Impacts of the COVID-19 Pandemic', Indonesian Legal Brief, 26 March 2020, Accessed 27 March 2020, (www.hukumonline.com).
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