From Government of Indonesia

Banks Lend $11.44b in 2006

Banks disbursed Rp102.8 trillion ($11.44 billion) in new credits in 2006, bringing the total outstanding credit to Rp832.9 trillion, against Rp695.65 trillion in 2005, Antara reported on Wednesday (7/2/07).

The credit expansion was below the target set for that year, although it rose 14.1% from the previous year, the central bank said.

Bank Indonesia (BI) spokesman Budi Mulya said bank assets totaled Rp223.7 trillion in 2006, up 15.2% from the previous year, while the average capital adequacy ratio increased to 20.5% from 19.5%. The increase in credits pushed up loan-to-deposit ratio to 64.7% from 59.66%.

Despite the increase in credits, the non-performing loan (NPL) ratio was reduced to 7% by December 2006 from 8.3% a year before, indicating improvement in loan collection, Mulya said.

The decline in NPL rate was attributed mainly to the restructuring of credits by state banks Bank Mandiri and Bank Negara Indonesia (BNI), which recorded the highest NPLs.
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