JAKARTA (Yosefardi) – Bank Indonesia (BI), central bank, expects the banks’ non performing loan (NPL) to reach 2.4% by end of this year. As at October 2014, Banks’ NPL was 2.35%.

The economic slowdown has boosted NPL, mainly NPL of commodity sector. Banks’ loan disbursement also declines, to grow by 11-13% by end of this year.

But for 2015, BI expects the improvement in NPL issue as the economy would grow along with the government’s program to accelerate the infrastructure development.

In July 2014, BI released NPL of construction sector was 4.43%, mining 3.09%, trade 3.06%, and public services 2.96%.

PT Bank Tabungan Negara (BTN) Tbk (BBTN) targets its loan to grow by 17-18% next year with its capital adequacy ratio (CAR) to reach 15-16%. The bank plans to issue asset-based collective investment contract (KIK-EBA) investment of Rp3 trillion next year.