JAKARTA | Several banks have begun to anticipate the rising NPLs in the micro, small, and medium enterprise (MSME) sector.
According to OJK data as of April 2016, MSME NPLs were recorded at 4.59%, approaching the regulator's safe limit of 5%. Since the end of 2015, MSME loan NPLs have increased by 14.5%.
PT Bank Rakyat Indonesia Tbk (BRI), for example. According to BRI MSME Director Mohammad Irfan, every bank, including BRI, already has a system in place to guide customers and monitor loans to prevent NPLs.
"So, there is already a risk management system, and if the loan quality deteriorates, we have a task force or a special account officer to handle NPLs," Irfan told KONTAN on Tuesday (12/7).
By the end of the year, BRI targets MSME NPLs to be at a level of 2% to 3%. As of June 2016, BRI's MSME NPLs were still below 2.5%.
PT Bank Mandiri Tbk is also optimistic that MSME NPLs can decrease as the bank, identified by the BMRI code, carries out restructuring.
According to Bank Mandiri Director Tardi, to reduce MSME NPLs, Bank Mandiri will improve its business model and regulate MSME business processes.
"In general, the reason MSME NPLs are increasing is due to the slowing economic growth, which has caused some entrepreneurs to experience business declines," said Tardi on Tuesday (12/7). As of Q1 2016, Mandiri's MSME NPLs stood at 1.37%.
PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) is also targeting maintaining the quality of MSME loans in the second half of 2016.
According to Anika Faisal, BTPN Compliance Director, the company will restructure MSME loans in the second half of 2016 to suppress NPLs.
"We will ensure it does not turn red," Anika told KONTAN on Tuesday (12/7).
In general, Anika stated that in the second half of 2016, BTPN would not aggressively target MSME loan growth. In Q1 2016, BTPN's MSME NPLs reached 3%, while SME NPLs stood at 1%.
OJK Deputy Commissioner for Banking Supervision I, Nelson Tampubolon, stated that this segment has a large number of customers but a lower outstanding loan value compared to other segments.
"So, there is no need to overly focus on the MSME segment, as the current NPLs are still manageable. Moreover, the national gross NPL is approaching 3%, and the net NPL is well below 1.5%," Nelson told KONTAN on Tuesday (12/7).
As of the first half of 2016, he added, credit growth trends had seen a slight increase, which explains the rise in NPLs. (Source: www.Kontan.co.id)