Return of the Old Restructuring Policy Strategy for Sustainability Post-COVID-19 of BRI Unit X Malang: Debtors' Responses vs BRI's Strategy

Research Aims: This study aims to determine the category of debtor responses to the transition from the COVID-19-related restructuring policy to the old restructuring policy. Additionally, it seeks to analyze BRI's strategy in responding to debtor perceptions and actions during this policy shift, and to explore the factors that BRI perceives as obstacles in the implementation of the transition along with the efforts that have been made. Design/methodology/approach: This research employs a qualitative method with an interpretive paradigm. It focuses on the phenomenon of restructuring at Bank Rakyat Indonesia (BRI) in Malang. Primary data were collected through in-depth interviews with informants who are knowledgeable about the restructuring transition process and its impact on debtors and the bank. Research Findings: The findings reveal that debtor customers generally do not differentiate between restructuring policies triggered by the COVID-19 pandemic and the pre-pandemic (old) restructuring policies. For them, any restructuring scheme is perceived as a favorable option when facing financial difficulties. This lack of differentiation stems from the fact that the transition primarily involves internal changes within BRI’s management, without significantly altering customer repayment obligations. Theoretical Contribution/Originality: This study contributes to the understanding of how internal banking policy transitions are perceived externally by customers. It highlights a gap between institutional policy shifts and customer awareness or concern, suggesting that customer responses are more influenced by the tangible outcomes (e.g., payment flexibility) than by the formal nature of the restructuring scheme