OJK Clarifies That Government Programme Credit Disbursement Is Not Mandatory, Still Guided by Prudence Principles
JAKARTA, KOMPAS.com - The Financial Services Authority (OJK) has clarified that the plan to include credit disbursements for government programmes in the Draft POJK on Banks’ Business Plans (RBB) is not a binding obligation for the banking sector.
OJK’s Executive Head of Banking Supervision, Dian Ediana Rae, stated that the provision is intended to strengthen the quality of banks’ business planning to make it more directed, measurable, and sustainable.
“Items listed in the business plan, including the point on providing credit for government programmes, fundamentally aim to enhance the quality of banks’ business planning to be comprehensive and forward-looking in identifying intermediation opportunities that can support national economic growth,” Dian told Kompas.com on Monday (20/4/2026).
With this approach, the potential for banking intermediation is expected to be identified in a more structured manner, without reducing the flexibility of each bank in conducting its business.
Dian emphasised that credit disbursements for government programmes are not mandatory and are not accompanied by any specific quotas from OJK.
The decision remains in the hands of each bank.
“Banks still have the leeway to establish credit disbursement strategies by considering their respective risk appetite and risk tolerance, while still adhering to prudence principles, risk management, and good governance,” she said.
She added that credit disbursement decisions remain a business judgement of the bank, based on business prospects, debtor performance, and repayment capacity.
On the other hand, OJK ensures that the encouragement for such credit disbursements remains aligned with prudence principles to avoid an increase in problematic credit risks or non-performing loans (NPLs) in the future.
According to Dian, credit disbursements within the framework of government programmes still refer to the provisions in POJK Number 42/POJK.03/2017, which regulates the obligation to prepare and implement credit policies for commercial banks.
The regulation requires banks to have internal policies that cover credit approval, monitoring of credit quality, up to the resolution of problematic credits, tailored to each bank’s risk profile and business strategy.
In the credit approval process, banks must also conduct a comprehensive feasibility analysis of debtors, including aspects of character, capacity, capital, collateral, and economic conditions.
In addition, banks are required to form provisions in accordance with applicable financial accounting standards as a risk mitigation measure.
OJK will also continue to conduct periodic supervision, both through monitoring of financial reports (offsite) and direct examinations (onsite), to ensure that the application of prudence principles in credit disbursements remains in accordance with the provisions.