Relief for some Indonesian hard-hit sectors

JAKARTA: Indonesia extends its loan forbearance for businesses such as accommodations as well as the textile and footwear industries that are yet to recover from the impact of the Covid-19 pandemic, the country’s financial regulator says.

The Financial Services Authority (OJK) has since March 2020 provided incentives to banks to restructure loans for debtors suffering from the pandemic.

“Most sectors and industries have recovered with strong growth. However, based on our in-depth analysis, several exceptions were found due to the prolonged impact of the Covid-19 pandemic,” OJK said in a statement.

The new extension will last until March 2024 and will apply to businesses that embrace accommodation, food and beverage, and labour-intensive industries like textiles and footwear, OJK said.

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

The rules, which mean lenders do not have to set aside provisions for soured loans, have helped prevent a spike in Indonesia’s non-performing loan ratio. — Reuters