Indonesia’s Loan Restructuring Programme to be Extended Through March 2022: Financial Services Authority

In order to soften the impact of the COVID-19 pandemic on Indonesia’s banks and borrowers, the Financial Services Authority (OJK) has announced the extension of its loan restructuring programme until March 2022. The OJK explained that this policy extension would be finalised via an OJK Regulations (POJK) and that it would also extend other programmes simultaneously, such as the exclusion of loan-at-risk calculation when assessing the health of banks.

The loan restructuring programme, established in March 2020 (POJK No. 11/2020) was initially set to last for a period of 12 months, until March 2021. The programme relaxes restructuring requirements as well as debt quality assessments for borrowers impacted by COVID-19...