OJK Considers Loan Restructuring for UMKM Affected by Sumatra Disasters

Potential Policy Based on Existing Regulation

The Financial Services Authority (OJK) is exploring the possibility of implementing loan restructuring measures for Micro, Small, and Medium Enterprises (UMKM) affected by the recent natural disasters in Aceh, North Sumatra, and West Sumatra. OJK Chairman Mahendra Siregar indicated that any potential policy would likely be based on OJK Regulation (POJK) Number 19/2022.

Scope of Potential Relief Measures

The regulation allows for various credit relief measures to be implemented by banks and financing companies in disaster-affected regions. Mahendra explained that the authority is currently gathering data on UMKM affected by the disasters to determine the appropriate course of action. The potential measures could include restructuring loan terms to provide relief to businesses struggling due to the disaster.

Implementation Considerations

While specific details of the potential restructuring policy are still under consideration, Mahendra emphasized that OJK is carefully examining the possibilities within the existing regulatory framework. The authority is working to balance the need for supporting affected businesses with maintaining financial system stability.