JAKARTA, (Bernama-ANTARA): The Indonesian government is preparing a special policy package to assist People's Business Credit (KUR) borrowers affected by force majeure events caused by flooding in Aceh, North Sumatra, and West Sumatra.
Coordinating Minister for Economic Affairs Airlangga Hartarto explained that the policy package will include debt restructuring, accelerated recovery in disaster-affected areas through the disbursement of new KUR loans in 2026 at low interest rates, and the option for certain borrowers to settle outstanding debts.
"The figures and technical details of the policy are currently being prepared. In the next few days, the government will announce a special economic policy for this disaster recovery," he said in Jakarta on Friday.
Of the 996,000 KUR borrowers across the three provinces, an estimated 141,000 - owing around Rp7.8 trillion (US$454 million) - are expected to be affected. This group includes over 63,000 agricultural-sector borrowers with outstanding debts totalling Rp3.57 trillion (US$208 million).
Hartarto stated that the government will also offer assistance to workers affected by the disaster, including waiving and writing off fines on BPJS Ketenagakerjaan (employment insurance) contributions for impacted employers, and facilitating payments or claims for old-age security (JHT), death benefits (JKM), work accident coverage (JKK), and pension benefits (JP).
He stated that this special policy package aims to provide space for KUR debtors, maintain stability, and encourage economic recovery in disaster-affected areas.
Earlier, during a visit to Bireuen District in Aceh, President Prabowo Subianto announced that the government would write off KUR loans for farmers affected by the floods and landslides.
He described the events as a natural disaster, or force majeure, assuring farmers that they should not worry about repaying their loans.
Meanwhile, the Financial Services Authority (OJK) has introduced a special policy to address the impact of floods and landslides in three Sumatran provinces.
On December 10, the OJK implemented a special treatment policy for debtors affected by the Sumatran floods, which will remain in effect for up to three years from the date of the decision.
Chairman of the OJK Board of Commissioners, Mahendra Siregar, stated that almost all districts/cities in the three provinces are classified as moderate to severe risk, based on the results of the regulator's mapping.
This situation highlights the urgent need to implement a special treatment policy for credit and financing for disaster-affected debtors, streamline reporting for impacted financial institutions, and simplify the insurance claims process. - Bernama-ANTARA
