Covid-19 (Corona Virus Disease) Article - Regulation of the Financial Services Authority of the Republic of Indonesia Number 11/POJK.03/2020 of 2020 Regarding the National Economic Stimulus as a Countercyclical Policy on the Impact of the Spread of Corona

To support the declining national economy due to the outbreak of the coronavirus disease 2019 (COVID-19), the government through the Financial Services Authority has issued the Republic of Indonesia Financial Services Authority Regulation Number 11/POJK.03/2020 of 2020 About National Economic Stimulus as Countercyclical Policy Impact of Coronavirus Disease 2019 (POJK 11/03/2020).

As regulated in POJK 11/03/2020, the Bank can implement policies that support economic growth stimulus for debtors affected by COVID-19 including micro, small and medium business debtors which include asset quality determination policies and credit or financing restructuring policies. Nevertheless, banks must still have guidelines for determining debtors affected by the spread of COVID-19. The guidelines contain at least the criteria for debtors determined to be affected and the sector affected by COVID-19. Debtors affected by the spread of COVID-19, including MSME debtors, are debtors who have difficulty fulfilling obligations to banks because debtors or businesses of debtors are directly or indirectly affected by the spread of COVID-19 in the economic sectors including tourism, transportation and hospitality.

The stimulus policy provided by the government consists of assessing the quality of credit/financing/provision of other funds based only on the accuracy of payment of principal and/or interest for credit/financing/provision of other funds with a ceiling of up to Rp10,000,000,000, and improving the quality of credit/financing became smooth after it was restructured during the validity of this POJK 11/03/2020.

In addition to the policy, this POJK also regulates bank policies related to providing credit or financing and/or providing new funds to debtors affected by the spread of COVID-19 including micro, small and medium business debtors and is carried out separately with credit quality or financing and/or provision of other funds that have been previously given.

We all hope that with the stimulus as regulated in POJK 11/03/2020, it can ease debtors, especially from the UMKM and encourage the Indonesian economy to be better in difficult times like now.

Suria Nataadmadja & Associates Law Firm

Advocates & Legal Consultants