TEMPO.CO, Jakarta - The Financial Services Authority (OJK) recorded a rise in the number of non-performing loans (NPL) in the third quarter 2016. By June 2016, the number of NPL stood at three percent (gross) or 1.3-1.4 percent (nett), slightly increasing when compared to the previous month at 2.9 percent.
OJK chairman Muliaman D. Hadad, explained that the increasing trend was caused by non-performing loans in a number of real sectors.
"I think there are new developments, except in old sectors, such as mining," Muliaman said at the Indonesia Stock Exchange in Jakarta on Thursday, July 28, 2016.
However, Muliaman claimed that the banking industry had anticipated the trend by increasing loan loss provision (CKPN).
"So, I think everything is still under control. Nothing is alarming," Muliaman added.
Muliaman viewed that the increase in the loan loss provision would not affect banks’ profit significantly, since the amount remained reasonable.
"What's important is positive fundamentals. After that, the opportunity to grow is huge," Muliaman explained.
Morever, Muliaman added, the country's economic condition is expected to improve and supported by an increasing market confidence, particularly from the second quarter to the end of this year.
The banking industry has revised the loan growth target in the banks’ business plan (RBB) this mid-year from 14 percent to 12 percent. Muliaman viewed that the target would be more feasible to reach by the end of this year.
"I think 12 percent is a good [loan growth] target. Besides, the economy experienced a great moderation. It's just that the expectation is too much," Muliaman concluded.
GHOIDA RAHMAH
