January 26, 2023
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Indonesia extends loan relief for some pandemic-hit sectors

JAKARTA — Indonesia has prolonged loan forbearance for companies equivalent to lodging in addition to the textile and footwear industries which might be but to recuperate from the impression of the COVID-19 pandemic, the nation’s monetary regulator stated on Monday.

The Monetary Companies Authority (OJK) has since March 2020 supplied incentives to banks to restructure loans for debtors struggling in the course of the pandemic.

“Most sectors and industries have recovered with a strong growth. However, based on our in-depth analysis, several exceptions were found due to the prolonged impact of the COVID-19 pandemic,” OJK stated in an announcement.

The brand new extension will final till March 2024 and can apply to companies equivalent to lodging, meals and beverage, and labor-intensive industries like textile and footwear, OJK stated.

All micro, small and medium enterprises may even be eligible to the incentives, the regulator stated.

The principles, which suggests lenders wouldn’t have to put aside provisions for souring loans, have helped forestall a spike in Indonesia’s non-performing loan (NPL) ratio. — Reuters

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