Banking credit restructuring policy amid COVID-19 pandemic in Indonesia

Abstract

In Indonesia, the spread of Coronavirus Disease 2019 (COVID-19) affects economic stability. The problem faced by Indonesia today is that the performance and capacity of debtors in carrying out their credit obligations have been disrupted by the spread of COVID-19, which has the potential to disrupt banking performance in credit management. Encouraging the optimization of the banking intermediary function a policy is needed in tackling the impact of the spread of COVID-19. The research method used is a normative legal research method using secondary data. The results of this study indicate that policy settings in overcoming economic instability due to the spread of COVID-19 are the issuance of policies to provide national economic stimulus through the application of Financial Services Authority Regulation No. 11/POJK.03/2020. This policy regulates the existence of credit restructuring, namely the quality of restructured loans can be determined smoothly if given to debtors identified as being affected by the spread of COVID-19. The implementation of the restructuring scheme can vary and is determined by the policies of each bank depending on the assessment of the debtor's profile and capacity to pay. We emphasize that amid uncertainty, such as the current policy will be truly useful if each party takes the process carefully and responsibly.

The Effect of Covid-19 Pandemic on the Performance of Islamic Bank in Indonesia

“…FDR shows that the financing provided, the higher the FDR, the greater the financing provided. Large financing will increase income which in turn will increase profitability (Disemadi & Shaleh, 2020). Prior to the Covid-19 pandemic, the FDR of Islamic banks was on average 129.72% and decreased to 84.19% during the pandemic.…”

“…Banking, both conventional and Islamic banks, is also facing challenges amid the Covid-19 outbreak (Disemadi & Shaleh, 2020;Labonte & Scott, 2020;and Ningsih & Mahfudz, 2020). AnIslamic Economics Observer who is also the founder of Karim Consulting, Adiwarman Karim, said that industry conditions could deteriorate earlier than the banking industry.…”

It is time to control the worst: testing COVID-19 outbreak, energy consumption and CO2 emission

“…Considering the energy consumption way forward, it has been noticed from previous studies that many of the energy consumption and energy sustainability frameworks have been implemented in the annual year of 2020. Conversely, the COVID-19 outbreak has postponed the entire activities related to the energy sector (Disemadi and Shaleh 2020).…”

“…The recent stock market volatility level has exceeded from the levels of the stock market crashes in October 1987and December 2008and 1929. During the same period, the uncertainty of the US economic policy indicated that by 24 March 2020, this number had jumped from 100 to 400 (Disemadi and Shaleh 2020). Similarly, the impact of the pandemic, such as the COVID-19 outbreak commonly referred to as the coronavirus, has severely affected Pakistan's energy sector.…”

The children rights protection in the new normal era: an Indonesia experience during covid-19 pandemic

“…The Government of Indonesia in its efforts to guarantee and realize child protection and welfare is through the establishment of Law Number 23 of 2002 concerning Child Protection. In the context of adjustments to several provisions, a number of changes were made to certain articles, thus enacting The problem of providing protection for children, in welcoming a new normal era or widely known as "New normal" is a necessity and must be faced by all countries until the discovery of a vaccine for Covid-19 disease (Disemadi & Shaleh, 2020). In the last few days, the implementation of this new normal policy has caused public debate related to various concerns of the people, especially the state's readiness to guarantee the safety of the population from the transmission of Covid-19 (Fitriyana, 2020;Muhyiddin, 2020), especially in the protection of children in terms of fulfilling their rights.…”