Indonesia extends mortgage reduction for some pandemic-hit sectors By Reuters

JAKARTA (Reuters) – Indonesia has prolonged mortgage forbearance for companies resembling lodging in addition to the textile and footwear industries which are but to get better from the influence of the COVID-19 pandemic, the nation’s monetary regulator stated on Monday.

The Monetary Companies Authority (OJK) has since March 2020 offered incentives to banks to restructure loans for debtors struggling throughout the pandemic.

“Most sectors and industries have recovered with a robust progress. Nonetheless, primarily based on our in-depth evaluation, a number of exceptions have been discovered because of the extended influence of the COVID-19 pandemic,” OJK stated in an announcement.

The brand new extension will final till March 2024 and can apply to companies resembling lodging, meals and beverage, and labour-intensive industries like textile and footwear, OJK stated.

All micro, small and medium enterprises may also be eligible to the incentives, the regulator stated.

The foundations, which suggests lenders shouldn’t have to put aside provisions for souring loans, have helped stop a spike in Indonesia’s non-performing mortgage (NPL) ratio.