Amendment to Financial Services Authority Regulation Number 11/POJK.03/2020 on National Economic Stimulus as a Countercyclical Policy for the Impact of Coronavirus Disease 2019 Spread

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 48 /POJK.03/2020
CONCERNING
AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 11/POJK.03/2020 CONCERNING NATIONAL ECONOMIC STIMULUS AS A COUNTERCYCLICAL POLICY FOR THE IMPACT OF THE SPREAD OF CORONAVIRUS DISEASE 2019 BY THE GRACE OF GOD THE ALMIGHTY, THE COMMISSIONERS OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that the ongoing spread of coronavirus disease 2019 (COVID-19) globally and domestically has had a direct or indirect impact on the performance and capacity of debtors to meet their obligations for loan or financing payments; b. that the subsequent impact on debtor performance and capacity will increase credit risk, liquidity risk, and in turn affect the capital resilience of banks, potentially disrupting banking performance and financial system stability, which can affect economic growth;
c. that to encourage the optimization of banking performance, particularly the intermediation function, maintain financial system stability, and support economic growth, it is necessary to take anticipatory and follow-up steps by adjusting the Financial Services Authority Regulation

Number 11/POJK.03/2020 on National Economic Stimulus as a Countercyclical Policy for the Impact of the Spread of Coronavirus Disease 2019; d. that based on the considerations referred to in letters a, b, and c, it is necessary to establish a Financial Services Authority Regulation on Amendment to the Financial Services Authority Regulation Number 11/POJK.03/2020 on National Economic Stimulus as a Countercyclical Policy for the Impact of the Spread of Coronavirus Disease 2019; Recalling: 1. Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1992 Number 31, Supplement to the State Gazette of the Republic of Indonesia Number 3472) as amended by Law Number 10 of 1998 on Amendment to Law Number 7 of 1992 concerning Banking (State Gazette of the Republic of Indonesia Year 1998 Number 182, Supplement to the State Gazette of the Republic of Indonesia Number 3790);
2. Law Number 21 of 2008 concerning Islamic Banking (State Gazette of the Republic of Indonesia Year 2008 Number 94, Supplement to the State Gazette of the Republic of Indonesia Number 4867);
3. Law Number 21 of 2011 concerning the Financial Services Authority (State Gazette of the Republic of Indonesia Year 2011 Number 111, Supplement to the State Gazette of the Republic of Indonesia Number 5253);
4. Financial Services Authority Regulation Number 11/POJK.03/2020 on National Economic Stimulus as a Countercyclical Policy for the Impact of the Spread of Coronavirus Disease 2019 (State Gazette of the Republic of Indonesia Year 2020 Number 76, Supplement to the State Gazette of the Republic of Indonesia Number 6480);

RESOLVES:
Establish: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 11/POJK.03/2020 CONCERNING NATIONAL ECONOMIC STIMULUS AS A COUNTERCYCLICAL POLICY FOR THE IMPACT OF THE SPREAD OF CORONAVIRUS DISEASE 2019.

CHAPTER I
GENERAL PROVISIONS
Article I
Several provisions in the Financial Services Authority Regulation Number 11/POJK.03/2020 on National Economic Stimulus as a Countercyclical Policy for the Impact of the Spread of Coronavirus Disease 2019 (State Gazette of the Republic of Indonesia Year 2020 Number 76, Supplement to the State Gazette of the Republic of Indonesia Number 6480) are amended as follows:

1. The provisions of paragraph (1), paragraph (2), paragraph (3), paragraph (4), and paragraph (5) of Article 2 are amended, and 1 (one) paragraph is added, namely paragraph (6), so that Article 2 reads as follows:
   Article 2
   (1) Banks may apply policies supporting economic growth stimulus for:
   a. debtors affected by the spread of coronavirus disease 2019 (COVID-19), including micro, small, and medium enterprise debtors; and b. Commercial Banks (BUK), Islamic Commercial Banks (BUS), or Islamic Business Units (UUS) as a result of the spread of coronavirus disease 2019 (COVID-19). (2) For debtors affected by the spread of coronavirus disease 2019 (COVID-19), including micro, small, and medium enterprise debtors as referred to in paragraph (1) letter a, the policies include:
   a. asset quality determination; and b. credit or financing restructuring.
   (3) In applying policies as referred to in paragraph (2), banks must still pay attention to the application of risk management as regulated in Financial Services Authority regulations regarding the application of risk management by Banks. (4) The application of risk management as referred to in paragraph (3) must at least:
   a. have guidelines for determining debtors affected by the spread of coronavirus disease 2019 (COVID-19) which must at least contain:
2. criteria for debtors determined to be affected by coronavirus disease 2019 (COVID-19); and
3. sectors affected by coronavirus disease 2019 (COVID-19);
   b. conduct assessments of debtors who are able to continue to survive the impact of coronavirus disease 2019 (COVID-19) and still have business prospects so that credit or financing restructuring can be granted in accordance with this Financial Services Authority Regulation;
   c. form provisions for debtors assessed as no longer able to survive after credit or financing restructuring is carried out in accordance with this Financial Services Authority Regulation;
   d. consider capital resilience and calculate additional provision formation to anticipate potential deterioration in the quality of restructured credit or financing in the event the Bank will distribute dividends and/or performance-based compensation; and e. conduct periodic resilience tests against the potential deterioration in the quality of restructured credit or financing and its impact on the Bank's liquidity and capital. (5) Policies for BUK, BUS, or UUS as a result of the spread of coronavirus disease 2019 (COVID-19) as referred to in paragraph (1) letter b include liquidity and capital policies. (6) BUK, BUS, or UUS in applying policies as referred to in paragraph (5) must obtain approval from the Financial Services Authority.
4. The provision of paragraph (3) of Article 5 is amended and 3 (three) paragraphs are added, namely paragraph (4), paragraph (5), and paragraph (6), so that Article 5 reads as follows:
   Article 5
   (1) The quality of restructured credit or financing is determined as "performing" (lancar) since the restructuring was carried out.
   (2) Restructuring of credit or financing as referred to in paragraph (1) can be carried out against credit or financing granted before or after the debtor was affected by the spread of coronavirus disease 2019 (COVID-19), including micro, small, and medium enterprise debtors. (3) Credit for Rural Banks (BPR) or financing for Islamic Rural Banks (BPRS) that is restructured as referred to in paragraph (1) is exempted from the application of accounting treatment for restructured credit or financing. (4) Credit for Commercial Banks (BUK) or financing for Islamic Commercial Banks (BUS) or Islamic Business Units (UUS) that is restructured as referred to in paragraph (1) may be exempted from the calculation of low-quality assets in the assessment of bank health. (5) Banks may adjust the approval mechanism for credit or financing restructuring as referred to in paragraph (1) while still paying attention to the principle of prudence. (6) The restructuring approval mechanism as referred to in paragraph (5) must be stated in the Bank's internal guidelines as an integral part of the guidelines for determining debtors affected by the spread of coronavirus disease 2019 (COVID-19) as referred to in Article 2 paragraph (4) letter a.
5. Between Article 6 and Article 7, 1 (one) article is inserted, namely Article 6A, so that it reads as follows:
   Article 6A
   (1) Banks must conduct an assessment as referred to in Article 2 paragraph (4) letter b regarding the ability of debtors affected by the spread of coronavirus disease 2019 (COVID-19) to survive until the end of the validity of this Financial Services Authority Regulation. (2) The assessment as referred to in paragraph (1) is conducted against debtors affected by the spread of coronavirus disease 2019 (COVID-19) who are restructured in accordance with Financial Services Authority Regulation Number 11/POJK.03/2020 on National Economic Stimulus as a Countercyclical Policy for the Impact of the Spread of Coronavirus Disease 2019 as well as this Financial Services Authority Regulation. (3) In the event that the Bank has assessed that debtors affected by the spread of coronavirus disease 2019 (COVID-19) cannot survive, the Bank conducts:
   a. assessment of the quality of restructured credit or financing in accordance with Financial Services Authority regulations regarding asset quality assessment; and b. formation of provisions. (4) The assessment mechanism as referred to in paragraph (1) must be stated in the Bank's internal guidelines as an integral part of the guidelines for determining debtors affected by the spread of coronavirus disease 2019 (COVID-19) as referred to in Article 2 paragraph (4) letter a.
6. Between CHAPTER IV and CHAPTER V, 1 (one) chapter is inserted, namely CHAPTER IVA, so that it reads as follows:
   CHAPTER IVA
   LIQUIDITY AND CAPITAL
7. Between Article 7 and Article 8, 4 (four) articles are inserted, namely Article 7A, Article 7B, Article 7C, and Article 7D, so that they read as follows:
   Article 7A
   (1) BUK included in the group of commercial banks with business activity 3, commercial banks with business activity 4, and foreign banks may adjust the lower limit for fulfilling the liquidity coverage ratio and net stable funding ratio from 100% (one hundred percent) to 85% (eighty-five percent) until March 31, 2022. (2) The submission of action plans for fulfilling the net stable funding ratio as well as worksheets and reports on the net stable funding ratio by BUK included in the group of commercial banks with business activity 3, commercial banks with business activity 4, and foreign banks on a monthly basis through the Financial Services Authority reporting system only applies in the event that the net stable funding ratio is less than 85% (eighty-five percent) until March 31, 2022. (3) BUK included in the group of commercial banks with business activity 3, commercial banks with business activity 4, and foreign banks with a liquidity coverage ratio and/or net stable funding ratio of less than 100% (one hundred percent) on March 31, 2022 must formulate an action plan to restore the fulfillment of the liquidity coverage ratio and/or net stable funding ratio to at least 100% (one hundred percent). (4) The action plan as referred to in paragraph (3) is submitted offline to the Financial Services Authority no later than April 30, 2022.
   Article 7B
   (1) BUK or BUS may provide education funds of less than 5% (five percent) of the human resource expenditure budget for the years 2020 and 2021.
   (2) BUK or BUS may not change the business plan in the event of a change in the plan to provide education funds as long as approval from the Financial Services Authority has been obtained as referred to in Article 2 paragraph (6).
   Article 7C
   BUK, BUS, or UUS may determine the quality of collateral taken over obtained until March 31, 2020 based on the quality of collateral taken over at the end of March 2020.
   Article 7D
   BUK or BUS included in the group of commercial banks with business activity 3 and commercial banks with business activity 4 may not meet the capital conservation buffer of 2.5% (two point five percent) of risk-weighted assets.
8. The provision of paragraph (2) of Article 8 is amended and 1 (one) paragraph is added, namely paragraph (4), so that Article 8 reads as follows:
   Article 8
   (1) Banks that determine the quality of credit or financing and/or provide other funds based solely on the accuracy of principal and/or interest or margin/profit share/ujrah payments as referred to in Article 3 paragraph (1) or Article 4 paragraph (1) submit the Credit or Financing Stimulus Report and/or Other Fund Provisioning Assessed Based on Payment Accuracy. (2) Banks that restructure credit or financing as referred to in Article 5 paragraph (1) submit:
   a. Restructured Credit or Financing Stimulus Report; and b. Recapitulation Report of Restructured Credit or Financing Stimulus.
   (3) The report formats as referred to in paragraph (1) and paragraph (2) are contained in the Appendix which is an integral part of this Financial Services Authority Regulation.
   (4) Banks report restructured credit or financing as referred to in Article 5 paragraph (1) in the Financial Information Services System by adding the note "COVID19".
9. The provisions of paragraph (1), paragraph (2), and paragraph (3) of Article 9 are amended and 1 (one) paragraph is added, namely paragraph (4), so that Article 9 reads as follows:
   Article 9
   (1) Banks submit reports as referred to in Article 8 paragraph (1) and paragraph (2) letter a on a quarterly basis since the end of December 2020 until the end of March 2022.
   (2) Banks submit reports as referred to in Article 8 paragraph (2) letter b on a monthly basis since the end of November 2020 until the end of March 2022.
   (3) Reports as referred to in paragraph (1) and paragraph (2) are submitted offline to the Financial Services Authority no later than the end of the following month after the reporting month position. (4) If the deadline for submitting reports as referred to in paragraph (3) falls on a Saturday, Sunday, and/or national holiday, the report is submitted on the next working day.
10. The provision of Article 10 is amended, so that it reads as follows:
    Article 10
    The application of policies supporting economic growth stimulus is valid until March 31, 2022.
11. The provision of Article 11 is amended, so that it reads as follows:
    Article 11
    At the time this Financial Services Authority Regulation comes into force, the provisions in:
    a. Board of Directors Decision of Bank Indonesia Number 31/310/KEP/DIR concerning the Provision of Funds for the Development of Human Resources of Commercial Banks; b. Financial Services Authority Regulation Number 16/POJK.03/2014 concerning the Assessment of Asset Quality of Islamic Commercial Banks and Islamic Business Units (State Gazette of the Republic of Indonesia Year 2014 Number 347, Supplement to the State Gazette of the Republic of Indonesia Number 5625) as amended by Financial Services Authority Regulation Number 19/POJK.03/2018 on Amendment to Financial Services Authority Regulation Number 16/POJK.03/2014 concerning the Assessment of Asset Quality of Islamic Commercial Banks and Islamic Business Units (State Gazette of the Republic of Indonesia Year 2018 Number 167, Supplement to the State Gazette of the Republic of Indonesia Number 6251);
    c. Financial Services Authority Regulation Number 21/POJK.03/2014 concerning Minimum Capital Provision Requirements for Islamic Commercial Banks (State Gazette of the Republic of Indonesia Year 2014 Number 352, Supplement to the State Gazette of the Republic of Indonesia Number 5630);
    d. Financial Services Authority Regulation Number 42/POJK.03/2015 concerning Liquidity Coverage Ratio Fulfillment Requirements for Commercial Banks (State Gazette of the Republic of Indonesia Year 2015 Number 369, Supplement to the State Gazette of the Republic of Indonesia Number 5809); e. Financial Services Authority Regulation Number 11/POJK.03/2016 concerning Minimum Capital Provision Requirements for Commercial Banks (State Gazette of the Republic of Indonesia Year 2016 Number 25, Supplement to the State Gazette of the Republic of Indonesia Number 5848) as amended by Financial Services Authority Regulation Number 34/POJK.03/2016 on Amendment to Financial Services Authority Regulation Number 11/POJK.03/2016 concerning Minimum Capital Provision Requirements for Commercial Banks (State Gazette of the Republic of Indonesia Year 2016 Number 188, Supplement to the State Gazette of the Republic of Indonesia Number 5929); f. Financial Services Authority Regulation Number 50/POJK.03/2017 concerning Net Stable Funding Ratio Fulfillment Requirements for Commercial Banks (State Gazette of the Republic of Indonesia Year 2017 Number 159, Supplement to the State Gazette of the Republic of Indonesia Number 6099); g. Financial Services Authority Regulation Number 33/POJK.03/2018 concerning Productive Asset Quality and Formation of Provisions for Productive Asset Write-offs for Rural Banks (State Gazette of the Republic of Indonesia Year 2018 Number 258, Supplement to the State Gazette of the Republic of Indonesia Number 6284); h. Financial Services Authority Regulation Number 29/POJK.03/2019 concerning Productive Asset Quality and Formation of Provisions for Productive Asset Write-offs for Islamic Rural Banks (State Gazette of the Republic of Indonesia Year 2019 Number 228, Supplement to the State Gazette of the Republic of Indonesia Number 6424);
    i. Financial Services Authority Regulation Number 40/POJK.03/2019 concerning Asset Quality Assessment of Commercial Banks (State Gazette of the Republic of Indonesia Year 2019 Number 247, Supplement to the State Gazette of the Republic of Indonesia Number 6440);
    j. Financial Services Authority Circular Letter Number 10/SEOJK.03/2014 concerning the Assessment of Health Levels of Islamic Commercial Banks and Islamic Business Units; and k. Financial Services Authority Circular Letter Number 14/SEOJK.03/2017 concerning the Assessment of Health Levels of Commercial Banks, are declared to remain valid insofar as they do not conflict with the provisions in this Financial Services Authority Regulation.
12. The Appendix is amended as contained in the Appendix which is an integral part of this Financial Services Authority Regulation.
    Article II
    This Financial Services Authority Regulation comes into force on the date of its promulgation.

This copy is in accordance with the original
Director of Law 1
Department of Law signed
Mufli Asmawidjaja

To ensure everyone knows, orders the promulgation of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on December 1, 2020

CHAIRMAN OF THE COMMISSIONERS
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO
Promulgated in Jakarta on December 3, 2020
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2020 NUMBER 267

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
REPUBLIC OF INDONESIA
NUMBER 48 /POJK.03/2020
CONCERNING
AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 11/POJK.03/2020 CONCERNING NATIONAL ECONOMIC STIMULUS AS A COUNTERCYCLICAL POLICY FOR THE IMPACT OF THE SPREAD OF CORONAVIRUS DISEASE 2019
I. GENERAL
In order to face the impact of the spread of coronavirus disease 2019 (COVID-19), the OJK has issued countercyclical policies effective since March 2020. The continued spread of coronavirus disease 2019 (COVID-19) globally and domestically will impact the increase in credit risk and liquidity risk of Banks, which will eventually erode the capital resilience of Banks. Therefore, countercyclical policies are needed as an anticipatory and follow-up step to encourage the optimization of banking performance, maintain financial system stability, and support economic growth. In the application of countercyclical policies for the impact of the spread of coronavirus disease 2019 (COVID-19), Banks must still pay attention to the principle of prudence accompanied by a monitoring mechanism to prevent misuse in the application of regulations (moral hazard). Countercyclical policies for the impact of the spread of coronavirus disease 2019 (COVID-19) are temporary, so they need to be evaluated and adjusted if necessary. In this regard, it is necessary to adjust the Financial Services Authority regulations regarding national economic stimulus as a countercyclical policy for the impact of the spread of coronavirus disease 2019 (COVID-19), including regulations regarding the extension of the stimulus period, the assessment mechanism for debtors assessed by Banks as able to continue to survive, and policies related to Bank liquidity and capital.
II. ARTICLE BY ARTICLE
Article I
Number 1
Article 2
Paragraph (1)
Letter a
What is meant by "debtors affected by the spread of coronavirus disease 2019 (COVID-19), including micro, small, and medium enterprise debtors" are debtors who experience difficulties in meeting obligations to Banks because the debtor or the debtor's business is impacted by the spread of coronavirus disease 2019 (COVID-19) either directly or indirectly in economic sectors such as tourism, transportation, hotels, trade, processing, agriculture, and mining. Examples:

1. Debtors affected by the closure of transportation and tourism routes to and from China or other countries affected by coronavirus disease 2019 (COVID-19) as well as travel warnings in several countries.
2. Debtors affected by a significant decrease in export-import volume due to supply chain and trade linkages with China or other countries affected by coronavirus disease 2019 (COVID-19).
3. Debtors affected by the hindrance of infrastructure development projects due to the halt of raw material supplies, labor, and machinery from China or other countries affected by coronavirus disease 2019 (COVID-19).
   Letter b
   Clear enough.
   Paragraph (2)
   Clear enough.
   Paragraph (3)
   Financial Services Authority regulations regarding the application of Bank risk management:
   a. for BUK, Financial Services Authority regulations regarding the application of risk management for commercial banks; b. for BUS and UUS, Financial Services Authority regulations regarding the application of risk management for Islamic commercial banks and Islamic business units;
   c. for BPR, Financial Services Authority regulations regarding the application of risk management for rural banks; or
   d. for BPRS, Financial Services Authority regulations regarding the application of risk management for Islamic rural banks.
   Paragraph (4)
   Letter a
   Clear enough.
   Letter b
   Clear enough.
   Letter c
   What is meant by "provisions" is:
4. for BUK, BUS, and UUS, impairment loss provisions in accordance with financial accounting standards;
5. for BPR, productive asset write-off provisions in accordance with Financial Services Authority regulations regarding productive asset quality and formation of productive asset write-off provisions for rural banks; or
6. for BPRS, productive asset write-off provisions in accordance with Financial Services Authority regulations regarding productive asset quality and formation of productive asset write-off provisions for Islamic rural banks.
   For BUK debtors assessed as able to survive after restructuring, they can still be classified as debtors who do not experience a significant increase in credit risk (Stage-1) in the calculation of impairment loss provisions. For BUS and UUS debtors assessed as able to survive after restructuring, they can still be classified as debtors with financing that does not experience impairment in accordance with financial accounting standards. Letter d Clear enough. Letter e What is meant by resilience testing includes among others the application of stress testing in various scenarios or review of debtor performance and feasibility. This resilience test is intended to assess the impact of the deterioration in the quality of restructured credit or financing on liquidity and capital, among others cash ratio, liquidity coverage ratio, net stable funding ratio, and/or minimum capital provision ratio related to the amount of additional provision formation.

Paragraph (5)
Clearly stated.
Paragraph (6)
Clearly stated.
Item 2
Article 5
Paragraph (1)
Credit or financing restructuring may be carried out against all credits or financings granted to debtors affected by the spread of coronavirus disease 2019 (COVID-19), including micro, small, and medium business debtors, without any ceiling limit. Paragraph (2) Implementation of restructuring:
a. credit for Commercial Banks is carried out in accordance with Financial Services Authority regulations regarding the assessment of the quality of assets of commercial banks; b. financing for Islamic Commercial Banks and Sharia Business Units is carried out in accordance with Financial Services Authority regulations regarding the assessment of the quality of assets of Islamic commercial banks and Sharia business units;
c. credit for Rural Banks is carried out in accordance with Financial Services Authority regulations regarding the quality of productive assets and the formation of provisions for the write-off of productive assets of rural banks; or
d. financing for Sharia Financing Companies is carried out in accordance with Financial Services Authority regulations regarding the quality of productive assets and the formation of provisions for the write-off of productive assets of Sharia financing companies. Paragraph (3) Accounting treatment for credit or financing restructuring, namely accounting treatment for credit or financing restructuring in accordance with financial accounting standards and accounting guidelines for Rural Banks or Sharia Financing Companies, including the recognition of losses arising from credit or financing restructuring. Paragraph (4) Credits or financings that:
a. are restructured; or b. experience a decline in quality to other than performing, after the validity period of this Financial Services Authority Regulation ends, shall be calculated as low-quality assets in accordance with Financial Services Authority regulations regarding the assessment of the health level of commercial banks or Financial Services Authority regulations regarding the assessment of the health level of Islamic commercial banks and Sharia business units. Paragraph (5) Examples of adjustments to the approval mechanism for restructured credits or financings include:
a. members of the Board of Directors may give principle permission for credits or financings and debtors established according to criteria as regulated in this Financial Services Authority Regulation and delegate authority to officials at certain levels to give approval or decisions on such credit or financing restructuring; b. approval remains carried out by parties higher than the credit or financing decision-maker, but can be carried out collectively after establishing criteria for debtors eligible for restructuring based on this Financial Services Authority Regulation; or
c. other mechanisms in accordance with the technical conditions faced by the Bank, while still applying principles of objectivity, independence, avoiding conflicts of interest, and fairness.

Paragraph (6)
Clearly stated.
Item 3
Article 6A
Paragraph (1)
The Bank ensures that policies supporting economic growth stimulus are given only to debtors affected by the spread of coronavirus disease 2019 (COVID-19) and estimated to remain resilient from the impact of coronavirus disease 2019 (COVID-19). Assessment of debtors includes, among others, the potential for debtor business growth and the debtor's ability to fulfill obligations according to the restructuring scheme. Assessment of the aforementioned debtors can be done individually or collectively. Collective assessment can be done by considering, among others, similarities in debtor characteristics and risks. Paragraph (2) The Bank may begin assessing the ability of debtors affected by the spread of coronavirus disease 2019 (COVID-19) who are restructured in accordance with Financial Services Authority Regulation Number 11/POJK.03/2020 concerning National Economic Stimulus as a Countercyclical Policy for the Impact of the Spread of Coronavirus Disease 2019 since this Financial Services Authority Regulation takes effect. Subsequently, for debtors affected by the spread of coronavirus disease 2019 (COVID-19) who are restructured in accordance with this Financial Services Authority Regulation, the Bank conducts assessment when about to carry out restructuring.

Paragraph (3)
The Bank's assessment results regarding debtors will impact the method of assessing the quality of restructured credits or financings.
Example 1:
Debtor Fanita has a credit with special attention quality at the end of June 2020. Debtor Fanita applied for restructuring and it was approved on August 15, 2020, so since the end of August 2020 position, the credit has performing quality. If based on the Bank's assessment results in December 2020 on Debtor Fanita:
a. can survive the impact of the spread of coronavirus disease 2019 (COVID-19), then it remains performing quality during the validity period of this Financial Services Authority Regulation; or b. cannot survive the impact of the spread of coronavirus disease 2019 (COVID-19), then starting January 1, 2021, credit quality assessment is in accordance with Financial Services Authority regulations regarding asset quality assessment and adequate reserves need to be formed. Example 2:
Debtor Linati applied for restructuring and it was approved in January 2021. If based on the Bank's assessment results on Debtor Linati:
a. can survive the impact of the spread of coronavirus disease 2019 (COVID-19), then the credit is performing quality from the time restructuring is done until the end of the validity period of this Financial Services Authority Regulation; or b. cannot survive the impact of the spread of coronavirus disease 2019 (COVID-19), then restructuring is treated like ordinary restructuring (without stimulus) and credit quality assessment is in accordance with Financial Services Authority regulations regarding asset quality assessment and adequate reserves need to be formed. Paragraph (4) Clearly stated. Item 4 Clearly stated. Item 5
Article 7A
Paragraph (1)
What is meant by:
a. commercial bank activity business 3 and commercial bank activity business 4 in accordance with Financial Services Authority regulations regarding activity business and office networks based on core capital of the bank; and b. foreign banks in accordance with Financial Services Authority regulations regarding the fulfillment of net stable funding ratio requirements for commercial banks. Paragraph (2) Clearly stated. Paragraph (3) Clearly stated. Paragraph (4) Submission of offline action plans to the Financial Services Authority is addressed to:
a. the Relevant Bank Supervision Department or Regional Office of the Financial Services Authority in Jakarta, for Commercial Banks headquartered or having branch offices from banks located abroad that are in the Special Capital Region of Jakarta Province and Banten Province; or b. Regional Office of the Financial Services Authority or Local Office of the Financial Services Authority, in accordance with the area where the head office of the Commercial Bank is located.
Article 7B
Clearly stated.
Article 7C
After the validity period of this Financial Services Authority Regulation ends, the assessment of the quality of collateral taken over obtained up to March 31, 2020, returns to being conducted based on the ownership period by Commercial Banks, Islamic Commercial Banks, or Sharia Business Units since the collateral taken over was obtained without considering the relaxation period.
Article 7D
Clearly stated.
Item 6
Article 8
Paragraph (1)
Clearly stated.
Paragraph (2)
Clearly stated.
Paragraph (3)
Clearly stated.
Paragraph (4)
Reporting in the Financial Information Service System by adding the description “COVID19” applies until the credit or financing is paid off or restructured again after the validity period of this Financial Services Authority Regulation ends. Item 7
Article 9
Paragraph (1)
Clearly stated.

Paragraph (2)
Clearly stated.
Paragraph (3)
Submission of reports offline to the Financial Services Authority is addressed to:
a. the Relevant Bank Supervision Department or Regional Office of the Financial Services Authority in Jakarta, for Banks headquartered or having branch offices from banks located abroad that are in the Special Capital Region of Jakarta Province and Banten Province; or b. Regional Office of the Financial Services Authority or Local Office of the Financial Services Authority, in accordance with the area where the head office of the Bank is located. Paragraph (4) Clearly stated. Item 8
Article 10
Clearly stated.
Item 9
Article 11
Clearly stated.
Item 10
Clearly stated.
Article II
Clearly stated.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6583

APPENDIX
FINANCIAL SERVICES AUTHORITY REGULATION
NUMBER 48 /POJK.03/2020
CONCERNING
AMENDMENT TO FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 11/POJK.03/2020 CONCERNING NATIONAL ECONOMIC STIMULUS AS A COUNTERCYCLICAL POLICY FOR THE IMPACT OF THE SPREAD OF CORONAVIRUS DISEASE 2019 Credit or Financing Stimulus Report and/or Provision of Other Funds Assessed Based on Payment Accuracy Bank Name :
Report Position : Month/Year
No Debtor Name CIF Economic Sector
Ceiling
(in millions of rupiah)
Debit Balance
(in millions of rupiah)
Asset Quality Description

Filling Guidelines:

1. In the event that a Commercial Bank has a Sharia Business Unit, the Credit or Financing Stimulus Report and/or Provision of Other Funds Assessed Based on Payment Accuracy of the Sharia Business Unit is submitted in a report separate from the Commercial Bank.
2. The Credit or Financing Stimulus Report and/or Provision of Other Funds Assessed Based on Payment Accuracy is only filled for debtors with ceilings:
   a. more than Rp5,000,000,000.00 (five billion rupiah) up to Rp10,000,000,000.00 (ten billion rupiah) for Commercial Banks, Rural Banks, and Sharia Financing Companies; b. more than Rp5,000,000,000.00 (five billion rupiah) up to Rp10,000,000,000.00 (ten billion rupiah) for financing and/or provision of other funds oriented towards exports, for Islamic Commercial Banks and Sharia Business Units; or
   c. more than Rp1,000,000,000.00 (one billion rupiah) up to Rp10,000,000,000.00 (ten billion rupiah) for financing and/or provision of other funds other than letter b, for Islamic Commercial Banks and Sharia Business Units.
3. In the event that a debtor has several accounts, the Bank reports 1 (one) debtor on 1 (one) row cumulatively in this report.
4. “Ceiling” is filled with the value of the total entire ceilings received by 1 (one) debtor.
5. In the event that a debtor has several types of “Economic Sector”, it is filled by the “Economic Sector” most dominant affected by the spread of coronavirus disease 2019 (COVID-19).
6. Types of Economic Sector are as follows:
   a. agriculture, forestry, and fisheries; b. mining and quarrying;
   c. manufacturing industry;
   d. construction; e. wholesale and retail trade, repair, and maintenance of cars and motorcycles;

f. transportation and warehousing; g. accommodation supply and food and beverage supply; h. travel agencies;
i. arts, entertainment, recreation; or
j. others (specify).
7. “Asset Quality” is the quality of credit or financing assets and/or provision of other funds at the report month position and is filled with 1 (performing), 2 (special attention), 3 (less performing), 4 (doubtful), or 5 (non-performing).
8. “Description” is filled with an explanation related to the reason the debtor is determined as a debtor affected by the spread of coronavirus disease 2019 (COVID-19), including micro, small, and medium business debtors.
Example:
a. closure of transport routes; b. supply chains;
c. project delays; or
d. others (explain).
Reasons can be filled with more than 1 (one).

Restructured Credit or Financing Stimulus Report Bank Name :
Report Position : Month/Year
No Debtor Name CIF Economic Sector
Ceiling
(in millions of rupiah)
Debit Balance
(in millions of rupiah)
Asset Quality Before
Restructuring
Description

Filling Guidelines:

1. In the event that a Commercial Bank has a Sharia Business Unit, the Restructured Credit or Financing Stimulus Report of the Sharia Business Unit is submitted in a report separate from the Commercial Bank.
2. This report is filled with data per account of credit or financing that is restructured in accordance with this Financial Services Authority Regulation.
   Example:
   a. Debtor A has account 1 and account 2 and only account 1 is restructured, then only account 1 is reported. b. Debtor A has account 1 and account 2 and all accounts are restructured, then the Bank reports each account on different rows.
3. “Economic Sector” is filled with the economic sector for credit or financing that is restructured. Filling “Economic Sector” follows the filling guidelines in the Credit or Financing Stimulus Report and/or Provision of Other Funds Assessed Based on Payment Accuracy.
4. “Asset Quality Before Restructuring” is filled with 1 (performing), 2 (special attention), 3 (less performing), 4 (doubtful), or 5 (non-performing).
5. “Description” is filled with an explanation related to the reason the debtor is determined as a debtor affected by the spread of coronavirus disease 2019 (COVID-19), including micro, small, and medium business debtors. Filling “Description” follows the filling guidelines in the Credit or Financing Stimulus Report and/or Provision of Other Funds Assessed Based on Payment Accuracy.

Recapitulation Report of Restructured Credit or Financing Stimulus Bank Name :
Bank Code :
Report Position : Month/Year
SME/
Non-SME
Potential Credit/Financing
COVID-19 Restructuring
Realization of Credit/Financing
COVID-19 Restructuring Realization Percentage
Provisioning
Accumulated Position
Total
Number of Debtors
Debit Balance
(Billion Rp)
Total
Number of Debtors
Debit Balance
(Billion Rp)
Total
Number of Debtors
Debit Balance
(Billion Rp)
Total
Number of Debtors
Debit Balance
(Billion Rp)
A. SME A1 A2 A3 A4 A5 A6 A7= A3/A1 A8=A4/A2 A9

1. Government Administration, Defense, and Mandatory Social Security
2. International Organizations and Other Extra-International Bodies
3. Other Business Fields Not Elsewhere Classified
4. Manufacturing Industry
5. Community Services, Socio-Cultural,
   Entertainment, and Other Personal Services
6. Health Services and Social Activities
7. Education Services
8. Personal Services Serving Households

SME/
Non-SME
Potential Credit/Financing
COVID-19 Restructuring
Realization of Credit/Financing
COVID-19 Restructuring Realization Percentage
Provisioning
Accumulated Position
Total
Number of Debtors
Debit Balance
(Billion Rp)
Total
Number of Debtors
Debit Balance
(Billion Rp)
Total
Number of Debtors
Debit Balance
(Billion Rp)
Total
Number of Debtors
Debit Balance
(Billion Rp)
9. Activities with Unclear Boundaries
10. Construction
11. Electricity, Gas, and Water
12. Accommodation Supply and Food and Beverage
Supply
13. Financial Intermediaries
14. Wholesale and Retail Trade
15. Fisheries
16. Mining and Quarrying
17. Agriculture, Hunting, and Forestry
18. Real Estate, Rental Business, and Corporate
Services
19. Households
20. Transportation, Warehousing, and Communication

SME/
Non-SME
Potential Credit/Financing
COVID-19 Restructuring
Realization of Credit/Financing
COVID-19 Restructuring Realization Percentage
Provisioning
Accumulated Position
Total
Number of Debtors
Debit Balance
(Billion Rp)
Total
Number of Debtors
Debit Balance
(Billion Rp)
Total
Number of Debtors
Debit Balance
(Billion Rp)
Total
Number of Debtors
Debit Balance
(Billion Rp)
B. Non-SME B1 B2 B3 B4 B5 B6 B7=B3/B1 B8=B4/B2 B9

1. Government Administration, Defense, and Mandatory Social Security
2. International Organizations and Other Extra-International Bodies
3. Other Business Fields Not Elsewhere Classified
4. Manufacturing Industry
5. Community Services, Socio-Cultural,
   Entertainment, and Other Personal Services
6. Health Services and Social Activities
7. Education Services
8. Personal Services Serving Households
9. Activities with Unclear Boundaries
10. Construction
11. Electricity, Gas, and Water
12. Accommodation Supply and Food and Beverage
    Supply
13. Financial Intermediaries

SME/
Non-SME
Potential Credit/Financing
COVID-19 Restructuring
Realization of Credit/Financing
COVID-19 Restructuring Realization Percentage
Provisioning
Accumulated Position
Total
Number of Debtors
Debit Balance
(Billion Rp)
Total
Number of Debtors
Debit Balance
(Billion Rp)
Total
Number of Debtors
Debit Balance
(Billion Rp)
Total
Number of Debtors
Debit Balance
(Billion Rp)
14. Wholesale and Retail Trade
15. Fisheries
16. Mining and Quarrying
17. Agriculture, Hunting, and Forestry
18. Real Estate, Rental Business, and Corporate
Services
19. Households
20. Transportation, Warehousing, and Communication
Total
C1 =
A1 + B1
C2 =
A2 + B2
C3 =
A3 + B3
C4 =
A4 + B4
C5 =
A5 + B5
C6 =
A6 + B6
C7=
C3/C1
C8=
C4/C2
C9=
A9+B9
Qualitative Information

Filling Guidelines:

1. In the event that a Commercial Bank has a Sharia Business Unit, the Recapitulation Report of Restructured Credit or Financing Stimulus of the Sharia Business Unit is submitted in a report separate from the Commercial Bank.
2. This report is filled with aggregate data of credit or financing that is restructured in accordance with this Financial Services Authority Regulation. Data is divided into restructuring of credit or financing to micro, small, and medium business (SME) debtors and non-SME. Specifically for the realization of restructuring, it is detailed by economic sector.
3. “Potential Credit/Financing COVID-19 Restructuring” is filled with the Bank's estimate of potential restructuring since the implementation of Financial Services Authority Regulation Number 11/POJK.03/2020 concerning National Economic Stimulus as a Countercyclical Policy for the Impact of the Spread of Coronavirus Disease 2019, up to March 31, 2022. In the event there is a change in the estimate of potential restructuring compared to the previous month's report, the Bank adds an explanation regarding the cause of such change in the “Qualitative Information” row.
4. “Realization of Credit/Financing COVID-19 Restructuring Accumulated” is filled with accumulated restructuring from the beginning of the Bank's restructuring activities until the end position of the report month.
5. “Realization of Credit/Financing COVID-19 Restructuring Position” is filled with restructuring at the end position of the report month in accordance with the amount reported by the Bank in the Financial Information Service System with the description “COVID19”. In the event there is a difference between the information reported and the Financial Information Service System, the Bank adds an explanation regarding the cause of such difference in the “Qualitative Information” row.
6. “Realization Percentage” is filled with the comparison between “Realization of Credit/Financing COVID-19 Restructuring Accumulated” and “Potential Credit/Financing COVID-19 Restructuring”.

This copy is consistent with the original
Legal Director 1
Legal Department signed
Mufli Asmawidjaja
7. “Provisioning” is filled with the difference between the provisioning formed at the end of the report month and the provisioning formed at the end of the previous month. Provisioning for Commercial Banks, Islamic Commercial Banks, and Sharia Business Units is impairment loss reserves, while for Rural Banks and Sharia Financing Companies it is provisions for write-off of productive assets.
Determined in Jakarta on December 1, 2020

CHAIRMAN OF COMMISSIONERS BOARD
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signature
WIMBOH SANTOSO