Regulatory Alerts2009-07-01
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Bank Indonesia Regulation No. 11/27/PBI/2009 Amending Special Loan Treatment for Yogyakarta Natural Disaster
Bank Indonesia issued Regulation No. 11/27/PBI/2009 to extend special treatment for bank loans affected by the May 2006 Yogyakarta earthquake, citing incomplete regional recovery and the global economic crisis. The amendment modifies Article 3 of the previous regulation by introducing a mandatory gradual provisioning schedule for asset losses on restructured debt, requiring banks to set aside 15% by December 2009, 50% by June 2010, and 100% by December 2010. This measure aims to support banking performance and economic conditions in the disaster-hit areas while ensuring prudent risk management through defined capital adequacy requirements.
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