2016, Non-Performing Loans (NPL) of Rural Banks Reached 5.83 Percent

In 2016, the Non-Performing Loan (NPL) ratio of Rural Banks (BPR) reached 5.83 percent, higher than the previous year's 5.37 percent. Similarly, the value of NPLs also increased by 18.58 percent to Rp 4.76 trillion from Rp 4.02 trillion in the previous year. The slowing domestic economy triggered a decline in public purchasing power, ultimately impacting borrowers' ability to repay their bank loans.

Despite the increase in non-performing loans, BPR profits in 2016 grew by 36.15 percent to Rp 1.76 trillion from Rp 1.29 trillion in the previous year. Total BPR credit as of December 2016 increased by 9.19 percent to Rp 81.68 trillion from Rp 74.8 trillion in the previous year. Similarly, third-party funds increased by 12.58 percent to Rp 75.73 trillion.

The Loan to Deposit Ratio (LDR) for BPRs in 2016 reached 76.42 percent, down from 77.81 percent in the previous year. The Return on Assets (ROA) reached 2.59 percent, down from 2.71 percent in the previous year. Similarly, the Return on Equity (ROE) in 2017 decreased to 23.61 percent from 24.76 percent in the previous year.