OJK Issues Stimulus Policy for Mouth and Nail Disease Outbreaks

  Economy

The Financial Services Authority (OJK) has issued a circular letter to the banking industry regarding the relaxation policy as a support for the OJK and the banking industry for certain oral and nail disease emergencies. The policy is related to the widespread outbreak of mouth and nail disease in livestock.

The Chief Executive of OJK Banking Supervision Dian Ediana Rae said the stimulus policy was also to support the national food security program policy, support the economy to continue to grow, and keep the banking sector stable.

Therefore, a countercyclical policy is needed to reduce the impact of the decline in the performance of debtors affected by foot and mouth disease on the banking industry. "OJK has conducted discussions both internally with OJK and with banking associations to support farmers and affected sectors," he said, Thursday (8/9/2022).

Meanwhile, the sectors referred to include beef cattle breeding and cultivation, dairy cattle breeding and cultivation, mixed farming or mixed farming sectors, as well as agriculture, plantation and livestock service sectors. Dian emphasized that this policy applies to conventional commercial banks (BUK), Islamic commercial banks (BUS), sharia business units (UUS), people's credit banks (BPR), and Islamic people's financing banks (BPRS).

In this case, banks can implement policies and restructuring schemes that support debtors affected by the FMD outbreak, including breeders and business people in the related processing industry while still paying attention to the principle of prudence. "Debtors who deserve relaxation are debtors who have performed well so far but whose performance has decreased due to the impact of the PMK outbreak," he said.

Meanwhile, the implementation of relaxation is treated similarly to the stimulus policy based on POJK Number 11/POJK.03/2020 concerning National Economic Stimulus as a Countercyclical Policy for the Impact of the Spread of Coronavirus Disease 2019 as last amended by POJK Number 17/POJK.03/2021. This means that the quality of credit/financing/providing other funds is only based on the accuracy of payment of principal and/or interest/margin/profit sharing/ujrah for credit/financing/providing other funds with a ceiling of up to Rp 10 billion.

"The validity period of this policy follows the implementation of the Decree of the Head of the National Disaster Management Agency regarding the determination of a certain emergency status for oral and nail diseases, and can be re-evaluated during the period of this relaxation," he said.

 

 

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