Bank NTT sets two credit-relief schemes after Flores earthquake

Labuan Bajo — Bank NTT has set up two credit-relief schemes for borrowers affected by the 15 August 2026 earthquake on Flores Island, but as of Monday, 7 September 2026, the bank had not received any formal applications for the facility, according to statements by its executives reported in regional media.

Bank NTT President Director Charlie Paulus said the regional development bank has identified around 52 to 53 customers whose businesses or properties were directly affected by the earthquake, and that relief is available once they submit requests for restructuring or deferment, according to coverage by detikcom and other outlets.

The measures are intended to ease repayment burdens during the recovery period following the magnitude-7-plus quake and ensuing tsunami warning that caused damage across parts of Flores, including financial and government offices.

Two schemes for repayment relief

According to reports citing Paulus, Bank NTT has prepared two options that eligible debtors can choose from.

• Principal-only deferral: a scheme in which borrowers can postpone repayment of loan principal. Detikcom’s report specifies a one-month deferral period for this option, while Pos Kupang notes that principal payments can be deferred for up to six months, with the precise term adjusted to each debtor’s condition and internal bank policy.
• Principal-and-interest deferral: a scheme that allows borrowers to postpone both principal and interest instalments for three months. Paulus was quoted explaining that the bank cannot grant a longer period without any payment of principal and interest, so the three-month ceiling was set for this option.

Media reports state that Bank NTT has encouraged customers whose homes or businesses were damaged to make use of these relief schemes if they are struggling to meet instalments.

Paulus also indicated that the bank would continue to evaluate the adequacy of the relief. If later assessments show more severe or prolonged impacts on borrowers, Bank NTT may consider adjusting or expanding its arrangements in line with regulatory guidance.

Borrower outreach and supervision

The bank has conducted initial data collection on affected customers across Flores, identifying roughly "52 or 53" debtors as having suffered direct impact from the earthquake.

Credit Director Aloysius Geong previously said that information on affected debtors would be submitted to the Financial Services Authority (Otoritas Jasa Keuangan, OJK), which supervises Indonesia’s financial-services industry. OJK has separately stated that it is inventorying debtors who face difficulty meeting instalments after the quake and is preparing regulatory room for relief tailored to disaster-related hardship.

Bank NTT’s branch in Labuan Bajo has also been involved in the broader post-disaster response, delivering basic supplies to the local disaster management agency for distribution to residents affected by the earthquake.

What borrowers should ask the bank

Publicly available reports do not detail the full mechanics of the schemes, such as how deferred amounts are treated at the end of the relief period, whether interest continues to accrue during deferral, how instalments are recalculated, or how long the overall loan tenor may be extended.

Prospective applicants are therefore advised to contact Bank NTT directly to confirm:

• Which of the two schemes applies to their specific loan product and business or household category.
• The exact deferral period granted, and whether their principal-only relief can be extended beyond one month under current policy.
• How interest will be treated and when normal payments will resume.
• What documents and eligibility criteria are required, and whether any relief is granted automatically for borrowers recorded as disaster-affected.

Borrowers should seek written explanations from the bank so that repayment obligations after the relief period are clear, especially given differing descriptions of principal-deferral durations in media reports.

Earthquake context

The Flores earthquake struck on Saturday, 15 August 2026, with national and regional media reporting a major offshore event of at least magnitude 7 that triggered a tsunami warning and caused structural damage in several districts. Coverage mentions damage to public offices and bank branches, underscoring the disruption faced by local businesses and households.

In this context, Bank NTT’s credit-relief schemes form part of a wider package of support offered by banks and state-linked institutions in Nusa Tenggara Timur to help affected communities stabilise cash flow and maintain access to financial services during the recovery period.

Sources

• detikcom – Bank NTT Siapkan 2 Skema Penangguhan Kredit untuk Korban Gempa Flores
• Pos Kupang – Bank NTT Siapkan Skema Penangguhan Kredit Nasabah Korban Gempa Flores
• Jawawa.id – Bank NTT Prepares Two Credit Relief Schemes for Flores Earthquake Victims
• RRI Ende – Bank NTT Labuan Bajo Salurkan Bantuan Bagi Warga Terdampak Gempa
• Komparatif.id – Gempabumi Magnitudo 7,7 Guncang Flores, BMKG Umumkan Peringatan Dini Tsunami