{
    "success": true,
    "data": {
        "id": 1818112,
        "msgid": "ojk-write-off-policy-for-msme-loans-now-permanent-1782184815",
        "date": "2026-06-23 08:43:00",
        "title": "OJK: Write-off Policy for MSME Loans Now Permanent",
        "author": "Andhika",
        "source": "MEDIA_INDONESIA",
        "tags": "",
        "topic": "Banking",
        "summary": "Indonesia's Financial Services Authority (OJK) has confirmed that the policy allowing banks to write off bad loans for micro, small, and medium enterprises (MSMEs) is now permanent under the P2SK Law. The regulation, which also extends to regional development banks and non-bank state-owned financial institutions, aims to accelerate the clean-up of bank balance sheets. OJK expects this to support healthier banking conditions and further expansion of financing.",
        "content": "<p>The Chief Executive of Banking Supervision at the Financial Services\nAuthority (OJK), Dian Ediana Rae, has confirmed that the policy of\nwriting off and\/or cancelling credit for micro, small, and medium\nenterprises (MSMEs) can now be carried out without any time limit. This\nprovision is regulated under Law Number 4 of 2023 concerning the\nDevelopment and Strengthening of the Financial Sector (P2SK). According\nto Dian, the regulation provides flexibility for banks to write off or\ncancel non-performing loans permanently.<\/p>\n<p>\u201cUnder the P2SK Law, write-offs and write-downs can now be done for a\nlifetime. That means forever,\u201d Dian said in Jakarta, as quoted on\nTuesday (23\/6).<\/p>\n<p>He explained that the scope of the policy for writing off bad debts\nand receivables has also been expanded. Whereas it previously targeted\nstate-owned banks, the rules now also cover government-owned non-bank\nfinancial institutions and regional development banks (BPD) or\nmunicipally owned banks.<\/p>\n<p>\u201cSecondly, it covers not only state-owned enterprises (BUMN) but also\nregionally-owned enterprises (BUMD),\u201d Dian stated.<\/p>\n<p>Dian assessed that this policy will help accelerate the process of\ncleaning up bank balance sheets. According to him, once loan loss\nreserves (CKPN) have been formed, banks only need to complete the\nadministrative process of writing off non-performing loans so they can\nrefocus on extending new financing.<\/p>\n<p>Dian revealed that bank lending conditions are beginning to show\nimprovement. After experiencing negative growth for several months\nearlier in the year, credit performance has now turned positive.\nAlthough the growth rate is not yet very high, the upward trend is\ncontinuing.<\/p>\n<p>OJK emphasised that various efforts undertaken with the banking\nindustry can maintain this momentum so that credit growth can continue\nto strengthen in the future.<\/p>\n<p>\u201cThe latest data shows that after several months of negative growth\nearlier in the year, it is now positive. Hopefully, it will continue to\nrise,\u201d he said.<\/p>\n<p>With the implementation of the P2SK Law and the acceleration of\nnon-performing loan resolution, OJK also hopes that the banking\ncondition will become healthier and the space for financing expansion\nwill be more open.<\/p>\n<p>\u201cThen the process of cleaning up the bank\u2019s balance sheet will\nproceed more smoothly,\u201d Dian concluded.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/ojk-write-off-policy-for-msme-loans-now-permanent-1782184815",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}