Jakarta, CNBC Indonesia – The Financial Services Authority (OJK) has asked the country’s banks to aggressively extend credit because in June there was a tendency for lending to remain stagnant.
OJK also hopes that the placement of government funds in state-owned banks (the Association of State-Owned Banks / Himbara) can make credit expansion remain expansive to overcome the impact of the economic slowdown due to the corona virus (Covid-19).
“As in the previous meeting, we conveyed that bank credit restructuring has started to run a bit sloping,” Chairman of the OJK Board of Commissioners Wimboh Santoso during a meeting with the House Commission XI, in Jakarta, Monday (6/29/2020).
“It means that it has been mostly carried out in April and May, June sloping. This is actually a sign that the peak has been done if there are not so many additions and this is the time we will ask banks to give credit to debtors who restructured yesterday or not,” he said.
Wimboh added that the placement of Rp 30 trillion in four Himbara banks would encourage banks to be more aggressive in extending credit for national economic recovery.
“In fact, we hope that the 30 trillion to Himbata bank will be returned in more detailed sectors and clusters for MSMEs. AWe monitor and coordinate meetings and submit them to KSSK [Komite Stabilitas Sistem Keuangan] as business plan bank in time recovery, “added Wimboh.
The four state-owned banks are PT Bank Rakyat Indonesia Tbk (BBRI), PT Bank Mandiri Tbk (BMRI), PT Bank Negara Indonesia tbk (BBNI), and PT Bank Tabungan Negara Tbk (BBTN).
From the capital side, said Wimboh, until now the national banking has no problems in terms of capital and liquidity after Bank Indonesia (BI) relaxed the Minimum Mandatory Giro (GWM) policy.
But there are a number of things that come to OJK’s attention, including an increase in bad loans (non performing loan/ NPL) in May, as previously predicted. According to Wimboh, several business sectors have been affected by Covid-19.
“This can only be [diatasi] if there is a chance for the community, there can be more freedom to do social activities, traveling although they still have to meet the Covid-19 protocol, “he said.
“This is the main condition of this credit, so if it is distributed, it can be very effective generate revenue for the company. The hotel if the credit has been disbursed [ditarik] but there are no occupants so it’s not optimal. Transportation has added capital, but nothing has gone up [penumpang]It’s the same, says Wimboh.
For this reason, continued Wimboh, banks were asked to carefully allocate which sectors were given new loans. Expected to absorb labor and businesses can grow.
(HPS / HPS)