OJK Sets Countercyclical Policy for Banks and Their Debtors in Effort to Mitigate the Impacts of the COVID-19 Pandemic

The ongoing coronavirus pandemic (“COVID-19”) is having a worldwide impact upon debtors as regards their abilities to fulfill their credit or financing payment obligations. In order to mitigate this impact, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) recently issued Regulation No. 11/POJK.03/ 2020 on National Economic Stimulus as Countercyclical Policy in Relation to the Impact of the Outbreak of the Coronavirus Disease 2019 (“Regulation 11/2020”) in an effort to boost the optimization of the banking intermediation function, to maintain the overall stability of the financial system and, eventually, to support recovery and economic growth.[1]