Corporations Stop Expansion, Undisbursed Loans Increase

The Indonesian banking industry is not only suffering from underwhelming loan disbursement but also leaving a high level of undisbursed loan from last year. The Financial Services Authority (OJK) recorded that the total of undisbursed loan as of November 2019 was Rp 1,636.49 trillion or 29.31 percent of total loan disbursement at the time at Rp 5,582.01 trillion. It was a year-on-year increase over the undisbursed loan in December 2018 at Rp 1,545.05 trillion or 28.83 percent of the total credit disbursement at the time at Rp 5,358.01 trillion. The existence of BUKU III and IV banks are allegedly causing a high level of undisbursed loan.

PT Bank Central Asia (BCA) Tbk is not an exception. As of October 2019, BCA’s Executive Vice President Secretariat & Communication, Hera F. Harryn, as quoted by Kontan on Thursday (2/6), revealed that the total undisbursed loan of the bank trading as BBCA on Indonesia Stock Exchange reached Rp 256 trillion or rising four percent year-on-year. On the other hand, PT Bank Pan Indonesia Tbk (Bank Panin), trading as PNBN, as of December 2019, also recorded a high level of undisbursed loan at Rp 40.21 trillion or 30.355 from the total available credit at Rp 132.49 trillion. It was up 2.18 percent year-on-year at Rp 39.35 trillion or up 28.88 percent from the available credit at Rp 136.24 trillion.