The Financing Restructuring Legal Analysis for Debtors Affected by Covid-19 in Sharia Multifinance Institutions

Abstract

This study focuses on problematic financing by debtors affected by Covid-19 at Islamic multi-finance institutions in Semarang City, with the aim of finding the reality of the form of problematic financing experienced by debtors during the Covid-19 Pandemic. This study uses an empirical juridical approach, data analysis using descriptive-analysis methods. Based on the research that has been done, the regulation of the Financing Restructuring Law is guided by POJK Number 11/POJK.03/2020 concerning National Economic Stimulus as a Countercyclical Policy on the Impact of Coronavirus Disease 2019 which regulates asset determination, financing restructuring and provision of new funds. The impact arising from the existence of a financing restructuring policy for debtors affected by Covid-19 can be viewed from the following aspects: (1)Juridical Aspect, meaning that there are no sanctions for the financing institution as a creditor if it does not follow or apply, only based on the willingness of the creditor; (2) Economic Aspect, can help debtors to recover and stabilize the economy so that they can fulfill promises (achievements) to creditors; and for creditors the impact on financial activities or transactions that occurred during the Covid-19 pandemic can still be stable; (3)Psychological Aspects, meaning that one side fosters a strong mentality and confidence for creditors/financing customers to fulfill their obligations, and on the other hand, the existence of the presence of financial institutions is maintained in the future.

National Economic Stimulus Policy to Reduce Non-Performing Loan Risk on Msme Debtors Affected by Covid-19 Disturbing Banking Performance and National Financial System

“…In this one-year period, debtors may postpone/reschedule the principal and/or interest repayment in the particular period following the bank/leasing agreement or assessment, e.g., 6, 9, or 12 months. The postponing policy is highly related to COVID-19 impacts on MSME debtors (Ilmih et al, 2021) March 2021 in a normal condition (Irianto et al, 2020). This one-pillar assessment only applies for a credit limit up to IDR 5 billion.…”