The non-performing loan (NPL) ratio for the mining and quarrying sector in March 2017 increased by 282 basis points (bps) to 7.05 percent, up from March 2016. This is the highest among all sectors with NPLs exceeding Rp 1 trillion. Non-performing loans in the mining sector reached Rp 8.8 trillion out of a total disbursed credit of Rp 124.8 trillion.
Second highest was the transportation sector's NPL at 4.92 percent, or Rp 8.42 trillion out of a total credit value of Rp 171.1 trillion. In third place, the wholesale and retail trade sector had an NPL of 4.5 percent, or Rp 37.65 trillion out of a total credit of Rp 836.5 trillion.
The continued sluggishness of the domestic economy and the persistently low prices of Indonesia's main commodities have led to a decline in consumer purchasing power. Consequently, people's ability to repay loans and interest has also decreased, particularly in the mining sector. This has triggered a rise in non-performing bank loans. Non-performing loans for conventional commercial banks in March 2017 increased to 3.04 percent from 2.83 percent in March 2016.
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