Indonesia extends loan relief to some pandemic-hit sectors

Since March 2020, the Financial Services Authority (OJK) has given incentives to banks to restructure loans from debtors who have suffered during the pandemic.

“Most sectors and industries have resumed strong growth. However, based on our in-depth analysis, several exceptions have been noted due to the lingering impact of the COVID-19 pandemic,” the agency said. OJK in a press release.

The new extension will last until March 2024 and will apply to businesses such as accommodation, food and beverages and labour-intensive industries such as textiles and footwear, the official said. OJK.

All micro, small and medium enterprises will also be eligible for the incentives, the regulator said.

The rules, which mean creditors are not required to make provisions for bad loans, have helped prevent a rise in the non-performing loan (NPL) ratio in Indonesia.

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