Inp.polri.go.id - Jakarta. The Financial Services Authority (OJK) announced the termination of banking credit relief measures implemented to alleviate the impacts of the COVID-19 pandemic, effective Sunday (31/3/2024).
OJK's Chairman, Mahendra Siregar, said, "The policy's conclusion aligns with the government's lifting of the COVID-19 pandemic status in June 2023."
The decision considers Indonesia's economic recovery from the pandemic's aftermath, as reported by antaranews.com
The banking sector currently demonstrates robust resilience, supported by strong capitalization, ample liquidity, and effective risk management practices.
Given these factors, the banking industry is well-prepared to navigate beyond the COVID-19 credit relief policy. The ongoing economic recovery, coupled with controlled inflation and expanding investments, bolsters this readiness.
Following Indonesia's status change in June 2023, economic activities have steadily rebounded. The credit relief measures, initiated in early 2020, were instrumental for numerous debtors, particularly micro, small, and medium enterprises (MSMEs).
This initiative formed a pivotal component of the counter-cyclical policy, supporting debtors, banking institutions, and the broader economy throughout the pandemic.
As of January 2024, various indicators underscored the robust state of Indonesia's banking sector, with Capital Adequacy Ratio (CAR) standing at 27.54 percent, Liquidity Coverage Ratio (LCR) at 231.14 percent, and Non-Core Deposit (NCD) at 123.42 percent, alongside satisfactory profitability levels.
Chairman Mahendra emphasized that these indicators serve as a substantial buffer against risks amid uncertain global economic conditions.
Moreover, credit quality remained sound, with gross non-performing loan (NPL) at 2.35 percent and net NPL at 0.79 percent, staying below the 5 percent threshold.
(mg/inp/pr/nm)
