OJK Enables Credit Relief for Sumatra Flood Victims

Regulatory Framework for Disaster Response

The Financial Services Authority (OJK) has allowed banks to provide special treatment to credit facilities held by victims of the recent floods in Sumatra. This decision is based on POJK Number 19/2022 concerning Special Treatment for Financial Services Institutions (LJK) in Certain Regions and Sectors Affected by Disasters in Indonesia.

Key Relief Measures for Affected Debtors

Dian Ediana Rae, OJK's Executive Head of Banking Supervision, outlined several key measures that banks can implement. These include:

• Providing new credit or financing facilities to affected debtors
• Restructuring existing credit facilities to ease repayment burdens
• Offering other forms of financial relief as permitted by the regulation

Implementation Guidelines

The regulation allows banks to provide new financial assistance to debtors affected by the natural disaster in specific regions of Indonesia. This includes extending new loans or credit facilities that can help businesses and individuals recover from the economic impact of the floods. The OJK's proactive measure aims to support the economic recovery in the affected regions by providing financial institutions with the flexibility to respond to the needs of their customers during this crisis.