Gen Z and Millennials Were the Largest Contributors to Non-Performing Loans in June 2023

Based on data from the Financial Services Authority (OJK), the national value of non-performing loans (NPLs) for online loans reached Rp1.73 trillion in June 2023.

The OJK monitors these online loan NPLs based on a non-performing loan (NPL) ratio >90 days. This means a loan is categorized as non-performing if the borrower fails to repay the debt for more than 90 days from the due date.

Analysis by borrower age group shows that NPLs for online loans are dominated by the 19-34 age group.

This group, comprising Generation Z and millennials, accumulated a total of Rp763.65 billion in loan defaults, contributing approximately 44.14% to the total national NPLs for online loans.

The OJK also notes that this age group consistently contributed the largest share of online loan NPLs throughout the first half of 2023.

Next is the 35-54 age group, with online loan NPLs totaling Rp541.26 billion, equivalent to 31.29% of the national total.

Borrowers aged over 54 years had online loan NPLs of Rp43.67 billion, followed by those under 19 years with Rp1.44 billion. Borrowers from these two age groups account for less than 3% of the total national online loan NPLs.

The number of active loan recipient accounts in the NPL category reached 601,338 entities in June 2023. This comprises 289,889 male borrowers and 311,079 female borrowers.

(See also: [Trend of Increasing Online Loan NPLs in the First Half of 2023](https://databoks.katadata.co.id/datapublish/2023/08/23/tren-kredit-macet-pinjol-meningkat-pada-semester-i-2023))