Financial Services Authority Regulation Number 18/POJK.03/2021 on the Second Amendment to Regulation Number 34/POJK.03/2020 on Policies for Rural Banks and Sharia Rural Financing Banks as a Result of the Spread of Coronavirus Disease 2019

COPY
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 18 /POJK.03/2021
CONCERNING
THE SECOND AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 34/POJK.03/2020 CONCERNING POLICIES FOR RURAL BANKS AND SHARIA RURAL FINANCING BANKS AS A RESULT OF THE SPREAD OF CORONAVIRUS DISEASE 2019 WITH THE GRACE OF THE ALMIGHTY GOD, THE COMMISSIONERS COUNCIL OF THE FINANCIAL SERVICES AUTHORITY, Considering:
a. that the pandemic due to the spread of Coronavirus Disease 2019 (COVID-19) is still ongoing and has an impact on the economy, including the performance of the rural bank and sharia rural financing bank industries; b. that to encourage the recovery of the performance of the rural bank and sharia rural financing bank industries, it is necessary to make further adjustments to the Financial Services Authority Regulation Number 34/POJK.03/2020 concerning Policies for Rural Banks and Sharia Rural Financing Banks as a Result of the Spread of Coronavirus Disease 2019 as amended by the Financial Services Authority Regulation Number 2/POJK.03/2021 concerning Amendment to the Financial Services Authority Regulation Number 34/POJK.03/2020 concerning Policies for Rural Banks and Sharia Rural Financing Banks as a Result of the Spread of Coronavirus Disease 2019;
c. that based on the considerations as referred to in letters a and b, it is necessary to establish a Financial Services Authority Regulation concerning the Second Amendment to the Financial Services Authority Regulation Number 34/POJK.03/2020 concerning Policies for Rural Banks and Sharia Rural Financing Banks as a Result 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 concerning 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 Sharia 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 34/POJK.03/2020 concerning Policies for Rural Banks and Sharia Rural Financing Banks as a Result of the Spread of Coronavirus Disease 2019 (State Gazette of the Republic of Indonesia Year 2020 Number 139, Supplement to the State Gazette of the Republic of Indonesia Number 6520) as amended by the Financial Services Authority Regulation Number 2/POJK.03/2021 concerning Amendment to the Financial Services Authority Regulation Number 34/POJK.03/2020 concerning Policies for Rural Banks and Sharia Rural Financing Banks as a Result of the Spread of Coronavirus Disease 2019 (State Gazette of the Republic of Indonesia Year 2021 Number 69, Supplement to the State Gazette of the Republic of Indonesia Number 6662);
   DECIDING:
   Establishing: FINANCIAL SERVICES AUTHORITY REGULATION CONCERNING THE SECOND AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 34/POJK.03/2020 CONCERNING POLICIES FOR RURAL BANKS AND SHARIA RURAL FINANCING BANKS AS A RESULT OF THE SPREAD OF CORONAVIRUS DISEASE 2019.

Article I
Several provisions in the Financial Services Authority Regulation Number 34/POJK.03/2020 concerning Policies for Rural Banks and Sharia Rural Financing Banks as a Result of the Spread of Coronavirus Disease 2019 (State Gazette of the Republic of Indonesia Year 2020 Number 139, Supplement to the State Gazette of the Republic of Indonesia Number 6520) as amended by the Financial Services Authority Regulation Number 2/POJK.03/2021 concerning Amendment to the Financial Services Authority Regulation Number 34/POJK.03/2020 concerning Policies for Rural Banks and Sharia Rural Financing Banks as a Result of the Spread of Coronavirus Disease 2019 (State Gazette of the Republic of Indonesia Year 2021 Number 69, Supplement to the State Gazette of the Republic of Indonesia Number 6662) are amended as follows:

1. Article 7 provisions remain unchanged, the Explanation of Article 7 paragraph (1) is amended as stated in the article-by-article explanation.
2. Article 10 provisions are amended, so that they read as follows:
   Article 10
   The application of policies for BPR and BPRS in this Financial Services Authority Regulation applies until March 31, 2023.

Article II
This Financial Services Authority Regulation takes effect on the date of its enactment.

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

To be known by everyone, ordering the enactment of this Financial Services Authority Regulation by placing it in the State Gazette of the Republic of Indonesia.
Established in Jakarta on September 10, 2021

CHAIRMAN OF THE COMMISSIONERS COUNCIL
FINANCIAL SERVICES AUTHORITY
REPUBLIC OF INDONESIA, signed
WIMBOH SANTOSO

Enacted in Jakarta on September 10, 2021
MINISTER OF LAW AND HUMAN RIGHTS
REPUBLIC OF INDONESIA, signed
YASONNA H. LAOLY
STATE GAZETTE OF THE REPUBLIC OF INDONESIA YEAR 2021 NUMBER 214

EXPLANATION
OF
FINANCIAL SERVICES AUTHORITY REGULATION
OF THE REPUBLIC OF INDONESIA
NUMBER 18 /POJK.03/2021
CONCERNING
THE SECOND AMENDMENT TO THE FINANCIAL SERVICES AUTHORITY REGULATION NUMBER 34/POJK.03/2020 CONCERNING POLICIES FOR RURAL BANKS AND SHARIA RURAL FINANCING BANKS AS A RESULT OF THE SPREAD OF CORONAVIRUS DISEASE 2019
I. GENERAL
As a response to the impact of the spread of Coronavirus Disease 2019 (COVID-19), the Financial Services Authority has issued Financial Services Authority Regulation Number 34/POJK.03/2020 concerning Policies for Rural Banks and Sharia Rural Financing Banks as a Result of the Spread of Coronavirus Disease 2019 which has been in effect since June 2, 2020 and Financial Services Authority Regulation Number 2/POJK.03/2021 concerning Amendment to the Financial Services Authority Regulation Number 34/POJK.03/2020 concerning Policies for Rural Banks and Sharia Rural Financing Banks as a Result of the Spread of Coronavirus Disease 2019 which has been in effect since February 18, 2021. The spread of Coronavirus Disease 2019 (COVID-19) is still ongoing, so restrictions on public activities are still being enforced to this day, which has an impact on the economy. Several economic indicators tend to improve, but anticipatory steps are still needed to handle the credit performance of BPR or BPRS financing, which will ultimately impact the performance of BPR and BPRS after the validity period of the stimulus provisions ends. Efforts to maintain the stability of banking performance, particularly the BPR and BPRS industries which play a fairly important role in the regions, need to continue to be carried out. Key financial indicators of the BPR and BPRS industry, such as the capital adequacy ratio, are still maintained as a result of the utilization of relaxation policies as regulated in the Financial Services Authority regulations regarding policies for BPR and BPRS as a result of the spread of Coronavirus Disease 2019 (COVID-19), including regarding the formation of provisions for the write-off of productive assets, the calculation of the value of collateral taken over as a reduction factor for core capital in the calculation of minimum capital provision requirements, the calculation of provisions in the form of interbank fund placements, and provisions for education and training funds for human resources. The application of relaxation policies for BPR and BPRS still pays attention to the principle of prudence and risk management to prevent misuse of the application of relaxation policies. In addition, BPR and BPRS need to ensure that the application of relaxation is followed by adequate anticipatory steps and preparations to return to implementing compliance with applicable laws and regulations after the end of the stimulus period. In relation to this, it is necessary to adjust the Financial Services Authority regulations regarding policies for BPR and BPRS as a result of the spread of Coronavirus Disease 2019 (COVID-19), namely regulations regarding the extension of the stimulus period.
II. ARTICLE BY ARTICLE
Article I
Number 1
Article 7
Paragraph (1)
Education and training funds for human resource development are for the year 2022.
Education and training funds for human resource development in accordance with the Financial Services Authority Regulation regarding the provision of human resource funds for BPR and BPRS.

Paragraph (2)
Clearly sufficient.
Number 2
Article 10
Clearly sufficient.
Article II
Clearly sufficient.
SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6723