To respond to the countercyclical policy issued by the Financial Services Authority (OJK) through the OJK Regulation (POJK) in press release No. HM.4.6 / 32 / SET.M.EKON.2.3 / 03/2020 concerning the National Economic Stimulus in the context of controlling the Indonesian economy due to the Covid-19 outbreak, KoinWorks As a Fintech Lending Company licensed and supervised by OJK with most of its users being SMEs will take anticipatory steps, as follows:

• KoinWorks has conducted a review of the loans that are currently running. The results show that not all of the lending industry is directly affected by COVID-19.
• With this review, KoinWorks decided to tighten the guidelines and SOPs for new borrowers, so that in the future they will be able to carry out their obligations well.
• To help Borrowers whose loans are currently running, KoinWorks will apply three (3) types of payment scheme adjustment relief (restructuring) to help Indonesian SMEs amid challenging conditions like this and prevent lenders from experiencing losses due to default, namely:

Grace Period

The borrower gets a grace period of 3-6 months.

The grace period is a grace period that allows the borrower to pay part of the principal amount of debt with loan interest or only loan interest until the grace period ends.

So that during the grace period, lenders will only get a lower return than the return when the grace period ends.

After the grace period ends, the Borrower will pay the principal and interest back each month until the loan tenor ends; Likewise, with your return, it will return to normal as usual.

Borrowers who will receive a graceful grace period are borrowers who experienced a 50-70% decline in sales during the COVID-19 pandemic.

Payment Holiday

Borrowers with a business type that has a direct impact due to the COVID-19 pandemic and has experienced a decrease in sales of more than 70% will get relief from not making payments for up to a maximum of 3 (three) months.

After the predetermined time limit is complete, the borrower will return to make payments until it’s finished.

Restructures

Restructuring is a form of relief obtained by borrowers by reducing the number of installments or extending the length of the installments for a maximum of 24 months for industries affected by COVID-19 and projects that are experiencing delays.

Lenders can get a bigger return overall because of the compounding effect of the restructuring that is being carried out.

We hope that Lenders can continue to support KoinWorks and its borrowers in this difficult time so that the businesses they run can continue to grow and become stronger after the COVID-19 pandemic.

Hopefully, you and your family will always be healthy, and don’t forget to do #GerakanSocialDistancing, wash your hands regularly, and maintain your immunity.