Indonesian Banking Sector Responds to Sumatra Flood Disaster

Mitigation Measures for Affected Customers

The recent flooding in Sumatra has prompted Indonesia's banking sector to implement various mitigation measures for affected customers. PT Bank Tabungan Negara (Persero) Tbk. (BBTN) is at the forefront of these efforts, currently conducting thorough assessments of their debtors to determine the appropriate support measures [source].

Loan Restructuring and Relief Measures

BTN is preparing to offer loan restructuring and other forms of relief to customers significantly impacted by the disaster. Corporate Secretary Ramon Armando emphasized that these measures are designed to ease the financial burden on affected clients while maintaining responsible banking practices. The bank's approach is guided by OJK Regulation No. 45/POJK.03/2017, which outlines special treatment for bank credit in disaster-affected areas.

Industry-Wide Response

Other major banks are also taking proactive steps:

• CIMB Niaga (BNGA): Director Lani Darmawan reported that the bank is currently assessing the impact on their debtors and preparing potential solutions tailored to individual customer needs.
• Allo Bank (BBHI): Risk Director Ganda Raharja Rusli stated that the digital bank is mapping affected customers across various regions and developing special scenarios to provide appropriate support.

Regulatory Oversight and Support

The Financial Services Authority (OJK) is closely monitoring the situation and coordinating regulatory responses. Chief Executive of Banking Supervision Dian Ediana Rae confirmed that OJK has established an emergency response team that is actively assessing the situation on the ground.

Existing Regulatory Framework

OJK has been utilizing its existing regulatory framework, particularly the 2022 regulation on special treatment for financial institutions in disaster-affected areas. This regulation allows for measures such as credit restructuring, asset quality assessment adjustments, and special credit facilities for affected debtors. The regulatory framework is designed to maintain financial system stability while providing necessary support to affected communities and businesses.

Conclusion

The Indonesian banking sector's coordinated response to the Sumatra flood disaster demonstrates the industry's commitment to supporting affected customers while maintaining financial stability. The combination of bank-level initiatives and regulatory support is expected to help mitigate the economic impact of the disaster on affected regions.