Bank Indonesia Policy Mix

OJK's Role in the National Economic Recovery Program (PEN) The Pandemic raises various risks that affect the financial system, namely default debtors, investor outflows, liquidity risk and capital risk. Credit restructuring relaxation policy by OJK, reducing the volatility of the capital market to assist financial services institutions in mitigating risks and helping businesses to continue their business activities in the midst of a pandemic. Some other OJK's support for the PEN program includes: Providing Interest Subsidy data related regarding banking debtors, finance company, BUMN Credit Distribution Program, which becomes the basis of giving interest subsidy. MSME's Guarantee Coordinating with Ministry of Finance in formulating the framework of implementing policy related to MSME's guarantee and providing information of criteria that can receive the guarantee. Corporate Guarantee Coordinating with Ministry of Finance in formulating the framework of implementing policy related to Banking guarantee and providing information of criteria that can receive the guarantee. Realization of the National Economic Recovery Program Gov't Fund Placement in Coordinating with Ministry of Finance assessing prospective Commercial Bank Partners as well as information & data exchange. OJK is actively monitoring Government fund placement to HIMBARA, Regional Development Bank and Sharia Bank. Various government stimulant such as government funds in these industry may encourage lending to accelerate the growth of the economy. r HIMBARA Regional Development Bank Credit Disbursement *IDR 218.36 T ■ Credit Disbursement *IDR30.12 T Sharia Bank ■ Credit Disbursement *IDR 5.89 T *data as of 31 Dec 2020 OJK's Way Forward Continuing Restructuring extension Restructuring Policy will be given selectively based on bank assessment to avoid moral hazard. Regional Economic Acceleration Accelerating regional economic to further facilitate national government spending. Source: Financial Service Authority (OJK) Financial Industry Optimalization financial Optimizing industry through financing labor-intensive business and / or high-multiplier effect consumption. Acceleration of Digitalization & Integrated Finance Accelerating digitalization and continuing NBFI and capital market reformation to increase competitiveness. Strengthening Integrated Supervision Improving supervision infrastructure technology licensing. and based 161

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