Banks in Indonesia began to beware of bad loans SME sector

Bank BRI Cabang Mamuju, Sulawesi Barat.

JAKARTA, [IFN] --- The bankers are now wary of going to surge problem loans or non-performing loans (NPLs) in the micro, small and medium enterprises (SMEs). Because the small entrepreneurs began to feel the impact of the weakening of the business slowdown of economic slowdown.

Djarot Kusumajakti, Director of SME Bank Rakyat Indonesia (BRI), admitted, the economic slowdown put pressure on the NPL SME loans so that the company anticipates an early age not to hoist the rise in bad debts.
Currently, the bank's focus on SMEs will keep the ratio of bad loans at a manageable level. The latest data, BRI has a gross NPL ratio of 1.12% for micro-credit, and gross NPL of 5.91% for medium credit.

Glen Glenardi, Director of Bank Bukopin, acknowledging an increase in bad loans to SMEs, due to the influence of economic conditions have not improved as the economic slowdown. "Yes, it is close to 4%," Glen said, yesterday.

Furthermore, Bukopin will improve the ratio of bad loans to below 3%. The trick is to select the debtor in accordance with the risk and type of business. "We will be looking for specific and focused target market added,"

Meanwhile, Lani Darmawan, Director of Retail Bank Internasional Indonesia (BII), admitted there was no increase in non-performing loans to SMEs, as companies targeting employers who are not vulnerable to the economic slowdown.

For example, SME loans flowing to the consumer segment, the household and women's empowerment into people's daily needs. "We still have a good NPL ie below 2%," said Lani.

Since the credit crunch still awake then BII will target SME loan growth of 10% -15% in the 2015's. Lani added, it has recorded a growth of SMEs by 10% in the first quarter / 2015.

Citing the Indonesian Banking Statistics (SPI) the latest, banks recorded NPL on SMEs reached 4.14% or status doubt the value of Rp 27.05 trillion as of January 2015. This figure is non-performing loans rose from 3.65% less current status with value of Rp 21.72 trillion as of January 2014.

Wholesale and retail trade sector is the largest contributor to non-performing loans of SMEs. As of January 2015, the value of nonperforming loans and retail trade sector amounted to Rp 14.10 trillion, then NPL construction sector amounted to Rp 3.20 trillion, and NPL agriculture, hunting and forestry amounted to Rp 2.28 trillion.