Banking industry says it stands ready to support regulatory measures aimed at providing credit relief for residents and businesses affected by severe flooding across Aceh, North Sumatra, and West Sumatra, as part of broader efforts to accelerate regional economic recovery.

The Indonesian Banks Association (Perbanas) expressed deep concern over the impact of the disaster, which has disrupted livelihoods, business operations, and financial activities particularly among micro, small, and medium enterprises (MSMEs).

Perbanas chairman Hery Gunardi said the industry is prepared to follow and implement any regulatory directives that grant financial breathing room to affected communities, drawing on previous disaster-response frameworks.

“Credit restructuring or relief measures are possible, as implemented in past disaster situations. These options are currently under review within the framework set by the government and the Financial Services Authority (OJK),” Hery said as quoted in a statement on Thursday, December 4, 2025.

He added that Perbanas will maintain close coordination with regulators and other stakeholders to safeguard financial system stability and ensure swift economic recovery in the affected regions.

The industry’s immediate priority, Hery said, is restoring banking operations and financial service infrastructure to ensure that basic financial needs in disaster-hit communities can resume as quickly as possible.

Banks have also started preliminary assessments to determine how the floods may affect borrowers’ repayment capacity.

“Perbanas stands with the people of Sumatra and is fully committed to supporting economic recovery and humanitarian efforts in the affected areas,” he said.

Credit relief

The potential relief measures refer to Financial Services Authority (OJK) Regulation No. 19/2022, which provides special treatment for financial institutions operating in regions or sectors hit by natural disasters.

Under the regulation, banks and nonbank institutions may receive flexibility in assessing asset quality, offering loan restructuring, and applying other regulatory leniencies designed to help stabilize financial services during emergencies.

As recovery efforts continue across Sumatra, the banking sector’s readiness to implement such measures is expected to play a critical role in cushioning economic losses and restoring local business activity.