Indonesia extends loan restructuring incentive for banks to March 2022

JAKARTA, Oct 23 (Reuters) - Indonesia’s financial authority (OJK) said on Friday it has extended loan restructuring incentives for banks until March 2022 as part of efforts to cushion the blow from the COVID-19 pandemic.

The Financial Services Authority of Indonesia will allow banks not to immediately make provisions for bad loans among other incentives to keep the financial system stable.

According to OJK’s record, loan restructuring has reached 904.3 trillion rupiah ($61.77 billion) for 7.5 million debtors as of Sept. 28. Gross non-performing loans reached 3.15% in September, down from 3.22% a month earlier.

$1 = 14,640.0000 rupiah Reporting by Tabita Diela; Editing by Jacqueline Wong