Jakarta. The Financial Services Authority (OJK) has introduced special regulatory relief measures for borrowers affected by severe flooding and landslides in Aceh, North Sumatra, and West Sumatra, aiming to prevent wider financial stress and support regional economic recovery.

The policy was approved during an OJK Board of Commissioners meeting on Wednesday, following field data collection and assessments showing that the disasters had disrupted local economic activity and impaired borrowers’ repayment capacity.

OJK said the special treatment is intended as a risk-mitigation step to ensure the disaster does not trigger systemic impacts while enabling faster recovery in affected regions.

The measures apply to banks, financing companies, venture capital firms, microfinance institutions, and other financial service providers, in accordance with Regulation No. 19/2022 on special treatment for financial institutions operating in disaster-hit areas.

Under the new policy, affected borrowers are eligible for:
• Simplified credit quality assessment, based solely on payment timeliness for loans of up to Rp 10 billion;
• Recognition of restructured loans as performing, with restructuring allowed for financing extended both before and after the disaster; and
• Access to new financing, with the quality of new loans assessed separately from existing exposures.

The relief measures are valid for three years starting December 10, 2025.

Insurance Sector Mobilized

OJK also instructed insurance and reinsurance companies to activate their disaster-response mechanisms to ease the burden on affected individuals and businesses. Companies have been directed to streamline claims processes, map out impacted policyholders, implement disaster recovery plans when necessary, enhance customer communication, and coordinate closely with the National Disaster Management Agency (BNPB), regional disaster agencies (BPBD), and reinsurers.

Insurers must also provide OJK with regular updates on claim handling to ensure transparency and timely resolution.

The regulator said the combined measures across banking, financing, and insurance sectors are designed to stabilize local economies and help communities rebuild after the widespread damage across the three provinces.