PRESIDENTIAL DECREE NO. 56/2002 DATED JULY 29, 2002
ON
RESTRUCTURING OF CREDITS OF SMALL - AND MEDIUM-SCALE BUSINESSES
THE PRESIDENT OF THE REPUBLIC OF INDONESIA,
Considering :
a. that in the framework of accelerating the just economic recovery and development, special efforts to rescue, protect and restructure small- and medium-scale businesses are needed;
b. that the special efforts as meant in letter a are realized by restructuring credits of small- and medium-scale businesses which are non-performing because of the crisis;
c. that based on the considerations as meant in letters a and b, it is necessary to stipulate a presidential decree on restructuring of credits of small- and medium-scale businesses.
In view of :
1. Article 4 paragraph (1) of the Constitution of 1945 as already amended by the Third Amendment to the Constitution of 1945;
2. Law No. 49 Prp/1960 on the state receivership committee (Statute Book of 1960 No. 156, Supplement to Statute Book No. 2104);
3. Law No. 7/1992 on the banking system (Statute Book of 1992 No. 31, Supplement to Statute Book No. 3472) as already amended by Law No. 10/1998 (Statute Book of 1998 No. 182, Supplement to Statute Book No. 3790);
4. Law No. 25/1992 on cooperative affairs (Statute Book of 1992 No. 116, Supplement to Statute Book No. 3502);
5. Law No. 1/1995 on limited liability companies (Statute Book of 1995 No. 13, Supplement to Statute Book No. 3587);
6. Law No. 9/1995 on small-scale businesses (Statute Book of 1995 No. 74, Supplement to Statute Book No. 3611);
7. Law No. 23/1999 on Bank Indonesia (Statute Book of 1999 No. 66, Supplement to Statute Book No. 3843); 8. Law No. 25/2000 on the national development programs for the 2000-2004 period (Statute Book of 2000
No. 206);
9. Government Regulation No. 32/1998 on the fostering and development of small-scale businesses (Statute Book of 1998 No. 46, Supplement to Statute Book No. 3743);
10.Government Regulation No. 17/1999 on the National Banking Restructuring Agency (Statute Book of 1999 No. 30, Supplement to Statute Book No. 3814) as already amended several times and the latest by Government Regulation No. 47/2001 (Statute Book of 2001 No. 71, Supplement to Statute Book No. 4102); 11.Presidential Decree No. 27/1998 on the establishment of the National Banking Restructuring Agency.
DECIDES :
To stipulate :
THE PRESIDENTIAL DECREE ON RESTRUCTURING OF CREDITS OF SMALL-AND MEDIUM-SCALE BUSINESSES.
Article 1
1. Credit restructuring shall be efforts applied by banks and the Indonesian Banking Restructuring Agency (IBRA) to credits of small-and medium-scale businesses so that debtors being small- and medium-scale businesses can fulfill their liabilities.
2. Banks shall be banks whose shares are wholly or mostly owned by the government.
3. The Indonesian Banking Restructuring Agency (IBRA) shall be the agency as meant in Presidential Decree No. 27/1998.
4. The Directorate General of State Receivership and Auction shall be a directorate general subordinate to the Ministry of Finance, which manage receivables and auctions.
5. Credit shall be the provision of money or claim treated such that, on the basis of credit approval or agreement between banks and other parties, which require the borrowers to settle their debts after a specified period by paying interest.
6. Small-scale businesses shall be the activities as meant in Law No. 9/1995 on small-scale businesses.
7. Medium-scale businesses shall be the activities as regulated in provisions of legislation on medium-scale businesses.
Article 2
(1) Restructuring of credits of small-and medium-scale businesses shall be designated for individuals or business entities categorized as small- and medium-scale businesses with a total credit ceiling and/or the unpaid principal debt of up to Rp. 5,000,000,000.00 (five billion rupiahs) per debtor at banks and the Indonesian Bank Restructuring Agency (IBRA) as of December 31, 1997.
(2) The credits of small- and medium-scale businesses as meant in paragraph (1) shall be credits used for productive activities or Modest/Very Modest House Ownership Credits (KPR RS/RSS) which are acquired before December 31, 1997 and declared non-performing from January 1, 1998 to December 31, 2000.
Article 3
The individuals or business entities as meant in Article 2 shall fulfill the following requirements : a. being cooperative and having goodwill to settle their debts;
b. still having bright business prospects but facing difficulties to pay principal debts and/or credit interest; c. having their credits processes in accordance with the provisions of laws in force and policies as well as
credit procedure at banks; and
d. excluding from companies being subsidiaries of large-scale companies or groups of large-scale businesses.
Article 4
(1) The credits of small- and medium-scale businesses as meant in Article 2 shall be restructured by banks in accordance with the provisions of Bank Indonesia and articles of associations of the respective banks, as well as the Indonesian Bank Restructuring Agency (IBRA) and provisions of laws in force in IBRA.
(2) Non-performing credits whose management has been transferred to the Directorate of State Receivership and Auction at the request of banks can be taken off again through the mechanism of re-withdrawal without necessary to convey a proposal
(3) The re-withdrawal of the credits as meant in paragraph (2) shall not be subjected to administrative cost of management of state receivables.
The State Minister for State-owned Enterprises as the Shareholder General Meeting (RUPS) or the government representative as the shareholder of state-owned companies/state-limited liability companies shall take measures needed in the framework of restructuring of credits of small- and medium-scale businesses.
Article 6
(1) In the program for restructuring credits of small- and medium-scale bus inesses as meant in Article 2 at banks, debtors being small- and medium-scale businesses can be given the following incentives :
a. In the case of debtors repaying debts in cash in a period of six months as from the date of issuance of this presidential decree, incentive in the form of discount of principal debts and abolition of interest and fine can be granted;
b. in the case of debtor being unable to paying cash, the repayment period can be extended by exempting them from interest and fine.
(2) The amount of incentives as meant paragraph (1) shall be stipulated by banks.
Article 7
(1) In the program for restructuring credits of small- and medium-scale businesses which is executed by the Indonesian Banking Restructuring Agency (IBRA) wherein debtors can pay in cash in a period of 6 (six) months as from the date of issuance of this presidential decree, incentive in the form of discount of principal debt as well as abolition of interest and fine can be granted.
(2) The amount of incentive as meant paragraph (1) shall be stipulated by the Indonesian Banking Restructuring Agency (IBRA).
(3) In the case of debtors being unable to pay in cash, their credits shall be settled by means of :
a. selling their portfolio credits and/or collateral through mechanism of competitive and transparent auctions in accordance with the provisions in force;
b. establishing clearing house or joint venture.
Article 8
The State Minister for State-owned Enterprises shall supervise the program for restructuring credits of small-and medium-scale businesses in accordance with laws in force.
Article 9
(1) The State Minister for Cooperatives and Small- and Medium-scale Businesses shall socialize the program for restructuring credits of small- and medium-scale businesses.
(2) In executing the socialization, the State Minister for Cooperatives and Small- and Medium-scale Businesses can cooperate with and seek assistance from government institutions concerned and/or other parties deemed necessary.
Article 10
Further provisions needed for implementing this presidential decree shall be stipulated by the Minister of Finance, State Minister for State-owned Enterprises and State Minister for Cooperatives and Small- and Medium-scale Businesses individually and jointly in accordance with their respective scopes of authority, not later than 30 (thirty) days as from the date of stipulation of this presidential decree.
This presidential decree shall come into force as from the date of stipulation.
Stipulated in Jakarta On July 29, 2002
THE PRESIDENT OF THE REPUBLIC OF INDONESIA, sgd.
