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Development of Non-Performing Loans in the Banking Sector 2012-July 2016
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Bank non-performing loans (NPLs) have been above 3 percent since May 2016. Data from the Financial Services Authority shows that the national banking NPL rate is 3.18 percent, an increase from the previous month's 3.05 percent and the highest since the end of 2015.
The slowing domestic economy in 2015 and the lack of recovery in 2016 have triggered a rise in national bank non-performing loans. Total national bank credit reached Rp 4,130.4 trillion by July 2016, with Rp 131.4 trillion classified as non-performing.
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