Upaya Bank Indonesia dan Bursa Efek Indonesia Selamatkan Ekonomi Indonesia

Summary

Bank Indonesia emphasizes that the current financial disruptions caused by the COVID-19 pandemic are fundamentally different from previous crises like those in 2008 or the Asian financial crisis. The banking sector remains robust, with high capital adequacy and manageable non-performing loans. Regulatory bodies, such as OJK, are introducing integrated stimulus policies to support affected sectors, including micro, small, and medium-sized enterprises (MSMEs). While banks assess the financial stability of impacted debtors, flexible measures such as reduced interest rates and loan extensions are being implemented to mitigate the economic fallout from the pandemic.

Takeaways

• 😀 Bank Indonesia emphasizes that the current financial challenges caused by the COVID-19 pandemic are different from past crises, particularly the 1998 and 2008 financial crises.
• 😀 The pandemic is viewed not just as a financial issue but as a humanitarian crisis affecting various sectors of society.
• 😀 Indonesia's stock market (Bursa Efek Indonesia) has modified its operational hours to adapt to the pandemic's impact, with the first session starting at 9:00 AM and ending at 11:30 AM, and the second session ending at 3:00 PM.
• 😀 The Indonesian government has introduced stimulus packages, including support for key industries like tourism, transportation, agriculture, and mining that have been heavily affected by the pandemic.
• 😀 Bank Indonesia reassures that the banking sector is healthy overall, with high capital adequacy and low non-performing loans (NPLs), unlike the troubled banking conditions in previous crises.
• 😀 The government and financial regulators are encouraging banks to provide relief to individuals and businesses impacted by the pandemic, including loan restructuring, interest rate reductions, and payment extensions.
• 😀 OJK (Financial Services Authority) continues to monitor and issue regulations to support the banking sector, ensuring that any adjustments are well-executed to protect economic stability.
• 😀 The banking sector's relief efforts are specifically targeted at affected sectors, such as tourism and transportation, and will depend on individual assessments of debtors' financial situations.
• 😀 Loan restructuring for businesses impacted by COVID-19 is intended to be customized based on each debtor's financial standing, with various forms of support like interest rate reductions, extended repayment periods, and new credit facilities.
• 😀 The government emphasizes the importance of making sure that any financial relief measures are carefully implemented to prevent misuse, ensuring that the support reaches those most in need without causing moral hazards.

Q & A

What is Bank Indonesia's stance on the current financial stability in comparison to previous global financial crises?

Bank Indonesia emphasizes that the current economic situation, caused by the COVID-19 pandemic, is significantly different from the financial crises of 1998 or 2008. This time, the issue is a public health crisis, not a financial or economic crisis.

Why does Bank Indonesia stress the difference between the current crisis and the 2008 global financial crisis or the 1998 Asian financial crisis?

Bank Indonesia stresses the difference because the current crisis is primarily a health issue (pandemic), whereas the 2008 and 1998 crises were related to financial system failures and economic factors.

How is the Indonesian banking sector coping with the economic impact of COVID-19?

The Indonesian banking sector is stable, with a strong capital adequacy ratio and relatively low non-performing loans. The financial institutions are in a healthy condition to face the challenges brought by the pandemic.

How has the Indonesian Stock Exchange (IDX) adjusted to the pandemic's impact?

The IDX has altered its trading hours. The morning session begins at 9:00 AM and ends at 11:30 AM, while the afternoon session now ends at 3:00 PM, a significant change from previous trading hours.

What steps is the Indonesian government taking to support industries affected by COVID-19?

The Indonesian government, along with Bank Indonesia, has introduced financial stimulus packages and loan relief measures for various sectors, including small and medium enterprises (SMEs) and informal workers affected by the pandemic.

What is the role of OJK (Financial Services Authority) in addressing the COVID-19 impact on the financial sector?

OJK is implementing integrated stimulus policies to support the financial industry. This includes special measures for debtors impacted by COVID-19, such as adjustments in loan terms, credit extensions, and support for sectors severely hit by the pandemic.

How does OJK plan to address the increased risk of non-performing loans (NPLs) due to COVID-19?

OJK has issued policies to help banks manage the rising NPLs by offering temporary adjustments to asset quality assessments. Debtors who are struggling due to the pandemic will be reclassified, potentially lowering their credit risk profile.

How will the financial assistance to businesses be allocated and managed during the pandemic?

The allocation of financial relief will depend on individual banks' assessments of the debtor's financial health. This includes evaluating the business's performance, the debtor’s capacity to pay, and the impact of the pandemic on the business.

What criteria will banks use to determine if a debtor is eligible for financial relief?

Banks will assess the debtor's financial health, their business prospects, and ability to repay loans. Sectors directly or indirectly impacted by COVID-19, such as tourism, transportation, and agriculture, will be prioritized.

What measures are being taken to prevent abuse of the financial relief program?

To prevent abuse, the relief measures will be implemented with strict monitoring and adherence to principles of prudence. OJK and banks will ensure that the policies are executed responsibly and do not lead to moral hazard.