Mining Sector Shows Highest Non-Performing Loan Ratio in Q2 2021

The Covid-19 pandemic has impacted all business sectors. This is reflected in the increase of the non-performing loan (NPL) ratio across almost all sectors.

Based on data from Bank Indonesia (BI), the national gross NPL for banks was 3.24% in Q2 2021. This figure increased by 71 basis points (bps) compared to December 2019, before the corona pandemic, which stood at 2.53%.

Sectorally, NPLs in mining increased by 222 bps to 5.8% in the second quarter of this year compared to December 2019. The ratio of non-performing loans in this sector is above the national NPL and is also the highest compared to other sectors.

The next highest ratio of non-performing loans came from the industrial sector, at 5.33%, or up 145 bps from the end of 2019. The NPL in the trade sector increased by 84 bps to 4.5%.

Meanwhile, the NPL in the construction sector was recorded at 3.52%, down 3 bps from its pre-pandemic level. The ratio of non-performing loans in the transportation sector increased by 78 bps to 2.42%.

The NPL in the business services sector increased by 78 bps to 2.35%. The NPL in the agricultural sector increased by 62 bps to 2.28%. The NPL in the social services sector increased by 53 bps to 2.03%.

The ratio of non-performing loans in other sectors increased by 32 bps to 1.92%. Meanwhile, the NPL in the electricity, gas, and water sector increased by 30 bps to 1.19%.

Furthermore, the banking loan at risk (LaR) was 22.66% in Q2 2021. This figure increased by 1273 bps from the end of 2019, which was only 9.93%. Bank LaR even reached its highest level of 23.52% in Q3 2020.