NPLs Fall Year-on-Year in January: OJK

Multi-finance companies have recorded a year-on-year improvement in non-performing loans (NPLs) in January to 2.95 percent from 3.17 percent, the Financial Services Authority (OJK) has said.

NPLs in January 2018 also declined slightly compared to the 2.96 percent in December 2017.

Indonesian Finance Services Association (APPI) chairman Suwandi Wiratno said over the weekend that the better NPL was a result of multi-finance companies’ attempt in 2017 to reduce bad debt .

“We project that this year’s NPLs will fall between 2.7 and 2.9 percent,” said Suwandi as quoted by kontan.co.id over the weekend.

APPI warned its members to be more prudent in disbursing loans, especially when offering a zero percent down payment, which could push bad debt.

Multi-finance companies disbursed Rp 416.48 trillion (US$ 30.30 billion) in January, compared to Rp 389.52 trillion in January 2017, or a 6.9 percent year-on-year increase.

Courtesy : TheJakartaPost , komoditas.Co.id

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