The Financial Services Authority (OJK) has approved special treatment in the form of credit relaxation for up to three years for debtors affected by natural disasters in Aceh, North Sumatra, and West Sumatra as part of efforts to aid post-disaster recovery. In addition to banking, the insurance sector has been directed to respond to claims more quickly and accurately, while continuing to prioritize the principle of prudence.

The approval was announced at the OJK Monthly Board of Commissioners Meeting (RDKB) Press Conference for November 2025, which was held virtually on Thursday (12/11/2025).

OJK Board of Commissioners Chairman Mahendra Siregar stated that the decision was made based on an assessment of the impact of the disaster on the regional economy and the debtors' ability to pay.

"The provision of special treatment is part of risk mitigation and supports the acceleration of economic recovery in the three provinces. The procedure refers to OJK Regulation Number 19 of 2022 concerning Special Treatment for Financial Services Institutions in Certain Regions and Sectors in Indonesia Affected by Disasters, also known as POJK Bencana," said Mahendra.

In accordance with the provisions of Article 8 of the POJK, special treatment based on the determination of being affected by a disaster includes several measures. First, credit quality assessment based on the accuracy of payments for 1 pillar for a ceiling of up to IDR 10,000,000,000. The pillar in question is the accuracy of principal payments only or interest payments only.

Second, the determination of credit quality for restructured loans can be applied to financing disbursed before or after the debtor was affected by the disaster. Third, new financing will be provided based on a separate credit quality assessment, with the one obligor principle temporarily suspended.

"This special treatment is valid for a period of up to 3 years from the date it was decided at the OJK board of commissioners meeting in Jakarta on Wednesday, December 10, 2025," he said.

Mahendra added that, in addition to bank loans, the OJK has requested all insurance and reinsurance companies to activate disaster response mechanisms, simplify claim procedures, strengthen customer communication and services, and report regularly to the OJK on the progress of claim handling.

"Post-disaster recovery requires sufficient time for community activities and the economy to return to normal. We hope that the three-year special treatment period will ease the burden on the community and give them room to recover," said Mahendra.

The OJK hopes that with faster handling and special treatment, mitigation measures will enable better control of risks that may still occur in the future for those who are affected overall, both financial service providers and debtors who are repaying financing loans.

Extension

In addition to credit relaxation for up to 3 years for debtors affected by disasters, OJK also announced an extension of the reporting deadline for all financial service providers by 10 working days to enable accurate and timely reporting, from the original date of December 12, 2025 to December 30, 2025.

OJK Chief Executive of Banking Supervision Dian Ediana Rae stated that for the banking sector, the reporting period for commercial banks for November 2025, which falls on December 8 and 15, 2025, has been extended to December 22 and 31, 2025, respectively.

Not only for commercial banks, the reporting deadline for BPR/S, which falls on December 10, 2025, has been postponed to December 24, 2025, while the deadline for business plan reports, which falls on December 15, 2025, has been postponed to December 31, 2025.

"This extension aims to ensure accurate reporting without burdening financial service institutions and other SLIK reporters," said Dian.

Supplementing the explanation of the Chairman of the OJK Board of Commissioners, Dian noted that the OJK has so far recorded 103,613 debtors directly affected by floods and landslides that occurred in 52 of 70 districts in Aceh, North Sumatra, and West Sumatra. For this reason, the determination of disaster status and special treatment are necessary measures that must be taken to prevent prolonged economic impacts.

The Chief Executive of Insurance, Guarantee, and Pension Fund Supervision (PPDP) at the Financial Services Authority (OJK), Ogi Prastomiyono, said that based on coordination between the OJK and the Indonesian General Insurance Association (AAUI), as of December 10, 2025, potential insurance claims for property affected by disasters are estimated at Rp492.53 billion, while the potential for motor vehicle insurance claims is estimated at Rp74.5 billion. As for life insurance claims, the field conditions are still being monitored and no specific amount can be reported yet.

"These figures are still provisional and will continue to change as data is collected from the field. This situation increases the burden of insurance claims, but reinsurance preparations, technical reserves, and capital management above the minimum requirements, accompanied by stress tests, will ensure that policyholder claims are paid quickly and in a measured manner," explained Ogi.

In line with the restructuring policy for debtors affected by disasters, OJK requires insurance companies, guarantors, and pension funds to maintain credit quality so that insurance claims do not arise suddenly. Companies are also required to provide reserves for the risk of customer premium defaults.

"OJK is providing reporting relaxation by extending the deadline for guarantee companies and pension funds from December 10 to December 24 in order to maintain smooth operations without reducing obligations to customers and regulators," concluded Ogi.

Evaluation

Following up on the OJK's directive, Bank Mandiri Corporate Secretary Adhika Vista stated that his party is currently conducting a comprehensive mapping of debtors who are potentially affected by disasters in Aceh, North Sumatra, and West Sumatra to determine the most appropriate risk mitigation measures in accordance with regulatory provisions.

"Along with this process, Bank Mandiri also continues to maintain coordination with the OJK and various related agencies, including local governments and disaster management agencies, so that every relaxation option can be carefully directed and remain in line with the principles of Good Corporate Governance/GCG," explained Adhika in a written statement received by SUARon Thursday (12/11/2025).

Bank Mandiri also stated its readiness to support the relaxation policy initiated by the Government as a form of rapid response in accelerating the recovery of the affected communities. Follow-up on these directives is carried out through comprehensive internal verification to ensure that their implementation is on target and in accordance with applicable regulations.

"At the same time, Bank Mandiri expresses its deepest empathy to all victims of the disaster. Through the Mandiri Peduli Bencana team and Mandirian volunteers, various forms of assistance have been actively distributed to the affected areas," Adhika concluded.