Bank Indonesia (BI) Representative of Riau islands confirmed today that many non-performing loans (NPLs) in some banks in Riau Islands, especially Batam. In fact, although the trend shows a decline, but the NPL is still high because it exceeds the 5 percent threshold. BI data shows the NPL ratio based on the project location in the last quarter of 2017 was 5.07 percent. Lower than the previous quarter by 5.23 percent. But the figure is still above 5 percent.
When viewed from the category of banks, bad debts occur mostly in Rural Banks (BPR) and Sharia Banks. While commercial banks are still fairly normal because they are still below the NPL. The BPR’s NPL in the second quarter of 2017 was 6.37 percent. It then rose in Q3 / 2017 to 7.18 percent. Then it fell slightly in the fourth quarter of 2017, to 5.62 percent.
Meanwhile, the ratio of nonperforming financing or nonperforming financing (NPF) in sharia banking is high. In the second quarter of 2017 recorded 17.2 percent. The third quarter was 16.8 percent, and the fourth Quarter was 10.3 percent. While the NPL of commercial banks in the second quarter of 2017 recorded 2.70 percent. The third quarter rose to 3.31 percent. Quarter IV fell slightly to 3.27 percent.
BI also noted total loans disbursed by banks in Riau Islands in the fourth quarter reached Rp 47.842 trillion. Consumer loans recorded the largest portion, which is 34.86 percent. The value reached Rp 16.677 trillion. The island of Batam, which lies within the central core group of islands (the Riau Archipelago), contains a majority of the province’s population. Since becoming part of an economic zone with Singapore in 2006, it has experienced high population growth rates. Other highly populated islands in the Riau Archipelago include Bintan and Karimun, while the archipelago also includes islands such as Bulan and Kundur. There are around 3,200 islands in the province, which has its capital at Tanjung Pinang in the south of Bintan Island.
“Consumer credit has improved as it grew by 7.70 percent compared to the preceding quarter which only grew by 6.09 percent,” said the head of BI’s Riau Islands Representative Office, Gusti Raizal Eka Putera, on Thursday (19/4).
Of that number, the largest consumer loan disbursement is KPR at 44.22 percent with a value of Rp 7.374 trillion. “Housing loans posted better growth in Q4 / 2017 by 3.37 percent,” he said.
However, it is not denied Gusti, Kepri who is still heading for recovery is faced with the reality of weakening household resilience in the midst of economic growth in the fourth quarter of 2017. This is reflected in the results of consumer surveys, where the level of consumer confidence in the current economic conditions are at pessimistic level.
“There is an increase, but still at pessimistic level. This condition makes households tend to withhold consumption and store funds in banks to anticipate future economic conditions, “he explained.