Pandemic Loan Restructuring Program Approaches $ 70.5 Billion – Thu, March 4, 2021

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(The Jakarta Post)

BONUS

Jakarta ●
Thursday, March 4, 2021

The country’s loan restructuring program has hit nearly 1 trillion rupees ($ 70.5 billion) as borrowers hit the economic downturn during the pandemic.

The Financial Services Authority (OJK) reported Friday that the size of restructured loans stood at Rs. 987.48 trillion on Feb. 8, involving 101 banks. About 39.3 percent are from 6.15 million small business borrowers and the remainder from 1.79 million other borrowers.

The loan restructuring program increased the loan-at-risk ratio (LAR) to 23.38 percent in December last year, after 9.93 percent in December 2019.

“That means that we know that many borrowers are affected by the pandemic, so they have to restructure and appear in the LAR,” said Bambang Widjanarko, the deputy commissioner for banking supervision II at the OJK, in a virtual briefing.

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