Jakarta. The Financial Services Authority (OJK) estimates nearly Rp400 trillion ($24 billion) in bank loans and financing could be affected by recent floods in parts of Sumatra.

More than 105,000 borrowers in Aceh, North Sumatra and West Sumatra have been impacted by severe flooding, much of it linked to extreme weather events. The exposure spans lending by banks, guarantee companies, finance firms and multifinance providers, OJK Chairman Mahendra Siregar said on Friday.

“The potential credit and financing exposure that could be affected is close to Rp400 trillion,” Mahendra said during the opening of the Indonesia Stock Exchange’s first trading session of 2026 in Jakarta.

The relief measures took effect on Dec. 10, 2025 — about two weeks after provincial governments in the three regions declared disaster emergencies — and are designed to accelerate post-disaster recovery.

OJK also unveiled a three-year regulatory relief program that will remain in place until Dec. 9, 2028. Under the policy, restructured loans will continue to be classified as performing, regardless of whether the restructuring occurred before or after borrowers were affected by the floods. The measures apply across all business segments, from micro, small and medium enterprises to large corporates.

OJK also said banks may extend new loans to affected borrowers without assessing a borrower’s overall credit exposure across facilities. In such cases, a borrower’s existing loan classification may be excluded from assessments for new financing.

Beyond banking, the regulator has urged insurance companies to map affected policies, simplify claims processes, and take other steps to ease the burden on disaster-hit customers.

Mahendra said the three-year timeframe was “realistic” to fully implement and activate the relief measures, adding that the regulator had drawn lessons from its response to the Covid-19 pandemic.

“During Covid, the triggers to declare crisis conditions were rigid and took time,” he said. “Under the revised regulation, the process can move faster with more precise calculations, while remaining prudent and accountable.”