Non-performing loans (NPLs) at Rural Banks (BPRs) are highest in Gorontalo. Based on Financial Services Authority data, BPR bad loans in Gorontalo reached Rp 6.01 billion, or 23.19% of the Rp 25.94 billion in disbursed loans. Percentage-wise, this NPL rate for BPRs in Gorontalo is the highest compared to other provinces.
The second highest NPL rate for BPRs is recorded in South Sumatra, with a value of Rp 154 billion, or 16.43% of the Rp 937 billion in loans disbursed. South Kalimantan ranks third, with NPLs reaching Rp 44.52 billion, or 13.96% of total loans amounting to Rp 332.24 billion. Meanwhile, total national BPR non-performing loans reached Rp 4.77 trillion, or 5.83% of total loans of Rp 81.68 trillion.
A lack of caution by banks in granting loans, coupled with a sluggish domestic economy, has led to a decrease in borrowers' ability to repay their debts. Furthermore, the interest rates on loans for small and medium-sized enterprises (SMEs), the target market for BPRs, are very high, reaching up to 30% per year.