The Financial Services Authority (OJK) will stop the credit restructuring policy affected by Covid-19 for the public sector in March 2023. Meanwhile, the number of banking Covid-19 restructuring has decreased. As is known, the OJK only imposed an extension of the Covid-19 restructuring for three segments, namely the MSME segment which covers all sectors, the accommodation and food and beverage provision sector, as well as several industries that provide large employment opportunities, namely the textile and textile product (TPT) industry to footwear industry.

As for the general sector, the Covid-19 credit restructuring relaxation policy will remain in effect until March 2023.

OJK Banking Supervision Chief Executive Dian Ediana Rae stated that along with the end of the Covid-19 restructuring until March 2023, the distribution of banking restructuring loans has also experienced a decrease.

"Bank credit restructuring reached IDR 499.87 trillion as of November 2022," he said at the OJK Board of Commissioners Meeting (RDK) on Monday (2/1/2023).

The bank credit restructuring decreased by IDR 13.27 trillion in November 2022 from the position in October 2022 which reached IDR 513.14 trillion. Meanwhile, the number of restructured customers reached 2.40 million customers.

A number of banks also recorded a decline in credit restructuring toward the end of last year. PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI), for example, recorded a decrease of 66.2 percent in total outstanding credit restructuring affected by Covid-19 on an annual basis (year on year/yoy) to reach IDR 116.45 trillion per quarter III/2022.

BRI's total Covid-19 restructuring also shrank by IDR 139.92 trillion or 54.5 percent of the accumulated Covid-19 restructuring for the period March 2020 to September 2022 which reached IDR 256.37 trillion. In terms of the number of customers, there are currently 1.4 million customers who have received BRI credit restructuring.

The number of customers also decreased from the initial accumulation of more than 3.9 million customers. The 87.0 percent decrease in the number of customers receiving BRI's credit restructuring was dominated by payments. BRI Corporate Secretary Aestika Oryza Gunarto said the restructuring was an effort to maintain the banking industry's credit quality performance and support the recovery of business actors affected by Covid-19.

"The restructuring policy has had a positive impact on the business continuity of BRI customers, the majority of which are MSMEs," he said.

Previously, BBRI also estimated that only 10 percent of the total credit restructuring due to Covid-19 could not be saved. While the majority of the rest returned smoothly.

"The majority of [restructuring loans] are smooth again and are able to pay their obligations according to the provisions. Many have even been paid off," said BRI Main Director Sunarso in a virtual press conference in Jakarta, some time ago (16/11/2022).

PT Bank Negara Indonesia (Persero) Tbk. (BBNI) also recorded a decrease in credit restructuring figures by 24% yoy to IDR 59.5 trillion. Deputy Main Director of BNI Adi Sulistyowati said that in terms of asset quality, the risk of loans disbursed or loan at risk (LAR) also fell 590 basis points to 19.3 percent as of September 2022.

"We also continue to strive to make LAR coverage or the reserve ratio for LAR debtors at an adequate level of 42.7 percent," he said in the company's third quarter/2022 performance presentation.