��������Ƶ

A Credit Policy sets the rules and standards for how a bank or financial institution in Indonesia handles lending decisions. It guides loan officers on evaluating borrowers, setting interest rates, and managing credit risks while following OJK (Financial Services Authority) regulations. Think of it as your organization's playbook for making smart, consistent lending choices.

Good credit policies protect both lenders and borrowers by establishing clear approval processes, collateral requirements, and credit monitoring procedures. They help financial institutions maintain healthy loan portfolios while supporting Bank Indonesia's financial stability goals. The policy typically includes specific guidelines for different types of loans, from consumer credit to business financing.

Banks and financial institutions need a Credit Policy before they start lending or when expanding their credit products in Indonesia. This becomes especially important when dealing with new market segments, launching different loan types, or adapting to changing OJK regulations. It's essential to have this policy in place before your first loan approval.

Use your Credit Policy during loan committee meetings, staff training, and periodic risk reviews. Update it when Bank Indonesia introduces new lending rules, your default rates change significantly, or market conditions shift. Many institutions review their policy quarterly to ensure it stays aligned with their risk appetite and regulatory requirements.

• Basic Credit Risk Policy: Sets core lending criteria and risk assessment methods for standard consumer loans and small business financing.
• Corporate Credit Policy: Focuses on complex business loans, syndicated lending, and large-scale project financing with detailed underwriting standards.
• Microfinance Credit Policy: Tailored for small loans to individuals and micro-enterprises, emphasizing social impact alongside financial returns.
• Islamic Banking Credit Policy: Ensures lending practices comply with Sharia principles while meeting OJK regulations for Islamic financial institutions.
• Digital Lending Policy: Addresses online lending platforms and fintech companies, including specific rules for digital credit assessment and monitoring.

• Board of Directors: Approves and oversees the Credit Policy, ensuring it aligns with the bank's risk appetite and strategic goals.
• Risk Management Committee: Develops and regularly reviews policy content, adapting it to changing market conditions.
• Credit Officers: Apply the policy daily when evaluating loan applications and making lending decisions.
• OJK Regulators: Monitor policy compliance with Indonesian banking regulations and supervisory frameworks.
• Internal Auditors: Assess policy implementation and recommend improvements to maintain effective credit risk controls.
• Branch Managers: Ensure their teams follow policy guidelines for loan origination and monitoring.

• Risk Assessment: Document your institution's risk appetite, target markets, and acceptable collateral types.
• Regulatory Review: Gather current OJK and Bank Indonesia regulations on lending practices and capital requirements.
• Industry Analysis: Research market conditions, competitor policies, and common default rates in your lending segments.
• Internal Input: Collect feedback from credit officers, risk managers, and branch operations teams.
• System Capabilities: Map your credit scoring tools, monitoring systems, and reporting capabilities.
• Documentation: Use our platform to generate a comprehensive Credit Policy that incorporates all these elements while ensuring regulatory compliance.

• Purpose Statement: Clear objectives and scope of lending activities aligned with OJK regulations.
• Risk Parameters: Detailed credit risk assessment criteria, loan-to-value limits, and industry exposure caps.
• Lending Authority: Approval hierarchies and delegation limits for different loan amounts.
• Collateral Requirements: Acceptable security types and valuation methods per Bank Indonesia guidelines.
• Monitoring Procedures: Credit review frequencies, early warning signals, and default management protocols.
• Compliance Framework: Anti-money laundering provisions and know-your-customer requirements.
• Review Mechanism: Policy update procedures and periodic assessment schedules.

A Credit Policy differs significantly from a Credit Agreement. While both documents deal with lending activities, they serve distinct purposes in Indonesia's financial sector.

• Scope and Purpose: Credit Policies provide institution-wide guidelines for all lending activities, while Credit Agreements are specific contracts between a lender and borrower for individual loans.
• Legal Nature: Credit Policies are internal governance documents that guide decision-making, whereas Credit Agreements are legally binding contracts that create enforceable obligations.
• Time Frame: Policies remain active until formally revised, typically reviewed quarterly or annually. Agreements have specific start and end dates tied to loan terms.
• Content Focus: Policies outline risk assessment criteria and lending standards, while Agreements detail specific loan terms, repayment schedules, and collateral arrangements.
• Target Users: Policies guide bank staff and comply with OJK regulations, while Agreements protect both lender and borrower rights in specific transactions.