Indonesia has been among the hardest-hit countries in south-east Asia during the Covid-19 pandemic, as seen in the rise in non-performing loans (NPLs) at its leading banks.
State-owned Bank Negara Indonesia saw its NPL ratio almost double, rising from 2.3% in 2019 to 4.3% last year, while the country’s largest lender, Bank Mandiri, saw its NPL ratio rise from 2.4% to 3.3%, according to The Banker Database.
Other leading lenders saw less severe rises. The NPL ratio at Bank Central Asia rose from 1.3% in 2019 to to 1.8% in 2020, while the NPL ratio at Bank Rakyat Indonesia inched up from 2.8% to 3.0%.
Bucking the trend was Bank Tabungan Negara, which saw its NPL ratio fall from 4.8% to 4.4% last year.
As the government eases regulatory support for the sector and the number of Covid-19 cases in the country remains high, further pressure on asset quality is expected.
Trends identified using The Banker Database, an online database providing comprehensive financial data and insight for 4000 of the world's leading banks in 190 countries. Contact us.
