Indonesia's Financial Services Authority has granted special credit and financing treatment to borrowers affected by the earthquake in eight East Nusa Tenggara regencies. The measure applies for three years from Sept. 28, 2026, and follows an assessment that the disaster had disrupted local economic activity, borrowers’ repayment capacity and financial institutions’ performance. It covers Ende, East Flores, Manggarai, West Manggarai, East Manggarai, Nagekeo, Ngada and Sikka. Under the authority’s 2022 disaster framework, financial institutions may assess credit or financing of up to IDR 10 billion solely by payment performance and classify restructured exposures as current, including financing extended before or after the borrower was affected. New financing may be assessed separately from existing exposures without applying the one obligor concept. The treatment applies to banks, financing and venture capital companies, technology-based peer-to-peer lending providers and other financial institutions, with corresponding application to pawn companies.
Indonesia's Financial Services Authority grants three-year special credit treatment to earthquake-affected borrowers in eight East Nusa Tenggara regencies
Indonesia's Financial Services Authority has granted three-year special credit and financing treatment to earthquake-affected borrowers in eight East Nusa Tenggara regencies. Measures include simplified quality assessments for exposures up to IDR 10 billion, current classification for restructured financing and separate assessment of new financing without the one obligor concept.