Indonesia Bank NPL estimated to stand at 2.8%

Bank Indonesia estimated that the non performing loan (NPL) ratio for Indonesian banks stand at 2.7-2.8% in 1Q16. The central bank stated that the banking industry is still cautious in its credit disbursement amid the high credit risk this year. The central bank further stated that the credit demand is not as high and is still waiting for the lower benchmark rate to support its growth. Moreover, the NPL for mortgage (KPR) stood at 2.6% in 2M16 or 0.3% higher compared to 12M15. While mining sector NPL reached 4.67% or 0.55% higher than 12M15.

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