Indonesia to reinstate SME loan restructuring effort

The programme allows banks to reclassify loans that have deteriorated as a result of the economic crisis caused by the pandemic lockdowns. — Reuters

JAKARTA: The Indonesian government is planning to revive a lockdown-era loan restructuring programme to protect small and medium enterprise (SME) borrowers from default, especially on loans disbursed through the state-led subsidised microloan programme (KUR).

Coordinating Economic Minister Airlangga Hartarto announced plans for the programme’s resumption on June 24, citing a request from President Joko Widodo. The programme was previously extended three times before expiring at the end of March of this year.