Reasons Why OJK Wants Banks to Extend Credit to Government Priority Programmes
The Financial Services Authority (OJK) has specifically included support from general banks for government priority programmes in the revision of the bank business plan (RBB) regulations. The Executive Head of Banking Supervision at OJK, Dian Ediana Rae, stated that the reason for including this point is to enable banks to identify credit opportunities that support economic growth.
Dian explained that the point on extending credit for government programmes fundamentally aims to strengthen the quality of banks’ business planning. “To make it comprehensive and forward-looking in identifying intermediation opportunities that can support national economic growth,” she told Tempo on Friday, 17 April 2026.
According to Dian, including the point on financing for priority programmes in the RBB can provide comprehensive information on the planning carried out by banks. Thus, the potential for credit extension to sectors that impact economic growth can be identified more structuredly.
Financing for government programmes is included in Article 13 letter h of the attachment to the Draft OJK Regulation (RPOJK). The regulatory document has been uploaded to gather public input since 6 April 2026. OJK has set a deadline for collecting input no later than Friday, 17 April 2026.
However, Dian explained that the point is not mandatory and is not accompanied by the setting of specific quotas by OJK. Banks still have the flexibility to determine their credit extension strategies by considering their own risk management, alias risk appetite and risk tolerance.
“The decision to extend credit remains a business judgement of the bank, carried out based on business prospects, debtor performance, and repayment ability,” she said.
Chief Economist at Permata Bank, Josua Pardede, stated that although it is not mandatory, its implementation needs to be monitored. “What needs to be guarded against is that this regulation does not turn into administrative pressure in practice that overrides creditworthiness assessments at the bank level,” he told Tempo on Thursday, 16 April 2026.
In addition, there are risks lurking if banks are pushed into new government sectors or programmes. Meanwhile, the risk profiles, cash flows, and debtor quality cannot yet be mapped accurately.
Government priority programmes do have the potential to drive financing demand. “But at the same time, vulnerabilities in credit quality still exist, especially in MSMEs and consumer credit,” he said.
According to Josua, this policy is unlikely to immediately cause systemic risks because banks’ capital buffers are still substantial. However, it could gradually increase the non-performing loan ratio if extensions are forced into projects that are still in the early stages, heavily dependent on fiscal support, or lack sufficient business track records. Moreover, credit extension requirements remain relatively stricter in the consumer and MSME segments because credit risks in those two segments are still high.
The adjustment to the RBB rules for government priority programmes was previously revealed by OJK Commissioner Council Chair Friderica Widyasari Dewi.
“We are designing the RPOJK for adjustments to the RBB provisions. In it, how we support banks to enter more into government priority programmes such as MBG (free nutritious meals), 3 Million Houses, Kopdes (village cooperatives), and others,” said Friderica at Bank Mega Tower on Tuesday, 7 April 2026, as quoted from Antara.