Indonesia's Financial Services Authority issues three-year special credit treatment for disaster-affected borrowers in Aceh North Sumatra and West Sumatra

Indonesia's Financial Services Authority (OJK) has issued a policy granting special regulatory treatment for credit and financing provided to borrowers affected by floods and landslides in Aceh, North Sumatra and West Sumatra, following data collection and an assessment that the disasters have weakened local economic activity and borrowers’ repayment capacity. The arrangements apply to banking loans and financing by financing institutions, venture capital firms, microfinance institutions and other PVML entities, with implementation referring to OJK Regulation Number 19 of 2022 on disaster-related special treatment. Key measures include assessing credit/financing quality based only on payment timeliness (one pillar) for exposures up to IDR 10 billion, allowing restructured facilities to be classified as performing, permitting restructuring for facilities extended either before or after the borrower was affected (with LPBBTI operators requiring funder approval), and allowing new financing to affected borrowers with a separate credit quality assessment for the new exposure without applying “one obligor”. The policy applies for up to three years from 10 December 2025. Separately, OJK has asked all insurance and reinsurance companies to activate disaster-response mechanisms, simplify claims processes, map impacted policies, implement disaster recovery plans where necessary, strengthen customer communications, coordinate with BNPB, BPBD and reinsurers, and provide OJK with regular updates on claims handling.